A joint resolution providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Internal Revenue Service relating to "Interim Guidance Simplifying Application of the Corporate Alternative Minimum Tax to Partnerships".
- Bill Number
- S.J.Res. 95
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-02-10: Motion to proceed to consideration of measure rejected in Senate by Yea-Nay Vote. 47 - 51. Record Vote Number: 35. (CR S543)
- Last Updated
- 2026-02-12T16:34:01Z
AI-Generated Summary
Purpose of the Legislation
This joint resolution (S.J. Res. 95) aims to block a specific guidance issued by the Internal Revenue Service (IRS) on how the Corporate Alternative Minimum Tax (CAMT) applies to partnerships. The CAMT is a tax rule designed to ensure large corporations pay at least a minimum amount of tax, regardless of deductions. By disapproving the guidance, Congress seeks to prevent it from taking effect, using a process called the Congressional Review Act (CRA), which allows lawmakers to overturn certain federal agency rules.
Key Provisions Outlined
- Disapproval of IRS Rule: The resolution explicitly disapproves IRS Notice 2025-28, titled "Interim Guidance Simplifying Application of the Corporate Alternative Minimum Tax to Partnerships."
- No Force or Effect: If passed, the guidance would be nullified and could not be enforced or used in any way.
- Legislative Process: Introduced by Senator Wyden (with cosponsors Senators King and Peters) on November 18, 2025; referred to the Senate Finance Committee, but discharged by petition under CRA procedures on December 18, 2025, and placed on the Senate calendar for a vote.
Significant Changes to Existing Law Introduced
- This resolution does not create new laws but invokes the CRA to override an existing IRS interpretive guidance (a type of non-binding advisory rule that explains how tax laws apply).
- It would eliminate the IRS's proposed simplifications for applying the CAMT to partnerships, potentially requiring partnerships to follow prior IRS interpretations or face uncertainty until new guidance is issued.
- No broader changes to the underlying CAMT (established by the 2022 Inflation Reduction Act) are proposed; the focus is solely on blocking this specific interim notice.
Potential Impacts
- On Government Agencies: The IRS would lose authority to implement this guidance, possibly leading to delays in tax enforcement or the need for revised rules. This could strain IRS resources as it navigates partnerships' CAMT compliance without clear direction.
- On Citizens and Businesses: Partnerships (business structures where multiple entities share ownership and profits, often used by large firms) could face increased complexity and costs in calculating taxes under the CAMT, affecting tax planning for investors, employees, and owners. Smaller partnerships might be less impacted if the CAMT primarily targets large corporations.
- On International Relations: Minimal direct impact, though multinational partnerships could see ripple effects on cross-border tax strategies, potentially influencing U.S. competitiveness in global business.
Main Stakeholders Affected
- Partnerships and Corporations: Large business entities subject to the CAMT, including those structured as partnerships, who would lose the benefit of simplified tax application rules.
- IRS and Taxpayers: The IRS as the enforcing agency; individual and corporate taxpayers relying on clear guidance to avoid penalties or disputes.
- Congress and Lawmakers: Senators Wyden, King, and Peters (Democrats) as introducers, representing interests in maintaining congressional oversight of tax policy; broader bipartisan or industry groups advocating for or against the IRS approach.
- Tax Professionals and Advisors: Accountants and lawyers who help businesses comply with tax rules, facing potential uncertainty in advising clients.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: Relies on the CRA (5 U.S.C. Chapter 8), a 1996 law allowing Congress to veto agency rules within a short window via simple majority vote (no presidential signature needed if passed quickly). Success would set a precedent for challenging IRS guidance on recent tax reforms like the CAMT.
- Constitutional Implications: Reinforces Congress's constitutional power to oversee executive agencies (Article I), preventing perceived overreach by the IRS in interpreting tax laws. However, it could raise questions about separation of powers if seen as micromanaging agency expertise.
- Political Implications: Highlights partisan divides on tax policy from the Inflation Reduction Act; the resolution's discharge by petition bypasses committee review, signaling urgency or opposition to the IRS's approach, potentially influencing future tax debates or IRS rulemaking independence.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (3)
Sen. King, Angus S., Jr. [I-ME], Sen. Peters, Gary C. [D-MI], Sen. Alsobrooks, Angela D. [D-MD]
Recent Actions
- 2026-02-10: Motion to proceed to consideration of measure rejected in Senate by Yea-Nay Vote. 47 - 51. Record Vote Number: 35. (CR S543) (Roll call 35)
- 2025-12-18: Placed on Senate Legislative Calendar under General Orders. Calendar No. 297.
- 2025-12-18: Senate Committee on Finance discharged, by petition, pursuant to 5 U.S.C. 802(c).
- 2025-12-18: Senate Committee on Finance discharged, by petition, pursuant to 5 U.S.C. 802(c).
- 2025-11-18: Read twice and referred to the Committee on Finance.
- 2025-11-18: Introduced in Senate
Bill Versions
- Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Internal Revenue Service relating to Interim Guidance Simplifying Application of the Corporate Alternative Minimum Tax to Partnerships. — issued 2025-12-18 — PDF (4 pages)