House GOP tried to block tariff challenges, but did not succeed. A small group of House Republicans joined Democrats on Tuesday to defeat a procedural rule that would have blocked fast-track votes to repeal President Trump’s tariffs, weakening Speaker Mike Johnson’s (R-LA) effort to shield the administration’s trade policy. The failed vote clears the way for Democrats to force a vote as soon as today on repealing the national emergency underpinning tariffs on Canada, a measure that could also attract bipartisan support in the Senate.
IRS expands digital tools for tax professional businesses. The IRS announced a new expansion of its Tax Pro Accountthat adds business-level digital capabilities for tax preparation firms and accounting practices. The update allows designated representatives to manage Centralized Authorization File access, link CAF numbers to employer identification numbers, and view or withdraw authorizations electronically. IRS CEO Frank Bisignano said the changes are intended to reduce paper filings and streamline how tax professionals serve clients, building on earlier digital upgrades for individual practitioners.
GAO finds most ERC refunds arrived after the crisis passed. A new Government Accountability Office (GA) report finds that the bulk of Employee Retention Credit (ERC) refunds were paid well after the worst of the pandemic had ended. According to GAO, about 83 percent of ERC refunds, roughly $235 billion, were issued between 2022 and June 2025, long after unemployment had returned to pre-pandemic levels. The report points to design and administrative challenges that delayed payments during 2020 and 2021.
Minnesota offers tax relief tied to immigration enforcement disruptions. The Minnesota Department of Revenue says it will work with taxpayers affected by increased federal immigration enforcement to reduce or waive penalties and interest, according to Tax Notes (paywall). While filing and payment deadlines cannot be changed, individuals and businesses may request penalty abatements if enforcement activity caused financial hardship beyond their control. The announcement comes amid heightened scrutiny of Immigration and Customs Enforcement operations in Minnesota and follows recent congressional fights over Department of Homeland Security funding.
Washington’s millionaire tax advances amid heated debate. Washington state’s proposed “millionaire tax” cleared the state’s Senate Ways and Means Committee and now heads to the Senate Rules Committee. Senate Bill 6346 would impose a 9.9 percent tax on residents earning more than $1 million annually, with supporters arguing it would help rebalance the state’s regressive tax system and fund public services.
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