Bill Summary
This joint resolution (S. J. RES. 95) is a formal disapproval by Congress of a specific rule issued by the Internal Revenue Service (IRS) concerning the application of the Corporate Alternative Minimum Tax (AMT) to partnerships. The rule in question, referenced as IRS Notice 2025-28, aimed to provide interim guidance to simplify how the corporate AMT applies to partnerships. By passing this resolution, both the Senate and the House of Representatives are asserting their authority to reject the IRS rule, which will have no legal effect following this disapproval. This action reflects Congress's oversight role in regulatory processes and its ability to intervene in federal agency rules that it finds undesirable.
Possible Impacts
The congressional disapproval of the IRS rule regarding the Corporate Alternative Minimum Tax (AMT) could have several implications for individuals and businesses. Here are three examples of how this legislation might affect people:
1. **Impact on Partnerships' Tax Burden**: The disapproval of the IRS rule could lead to a more complex tax environment for partnerships. The interim guidance was intended to simplify the application of the Corporate AMT, which means that without this guidance, partnerships might face a more cumbersome process for calculating their tax obligations. This could result in higher compliance costs and administrative burdens, ultimately impacting the profitability of partnerships and potentially leading to increased prices for consumers.
2. **Investment Decisions by Businesses**: The absence of simplified guidance could create uncertainty for businesses regarding their tax liabilities. This uncertainty may affect investment decisions, as companies might be less willing to commit to new projects or expansions if they are unsure about their tax obligations. As a result, this could slow economic growth and job creation, affecting employees and local economies.
3. **Individual Taxpayers' Indirect Effects**: While the legislation directly targets corporate entities, individual taxpayers could feel the effects indirectly, especially if partnerships pass on additional costs to consumers. For example, if partnerships incur higher tax-related expenses and choose to raise prices to maintain profit margins, ordinary consumers may face increased costs for goods and services. Furthermore, if the disapproval leads to reduced investment and economic activity, it could affect job availability and wages for individuals in the workforce.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S.J. Res. 95 Placed on Calendar Senate (PCS)]
<DOC>
Calendar No. 297
119th CONGRESS
1st Session
S. J. RES. 95
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''.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
November 18, 2025
Mr. Wyden (for himself, Mr. King, and Mr. Peters) introduced the
following joint resolution; which was read twice and referred to the
Committee on Finance
December 18, 2025
Committee discharged, by petition, pursuant to 5 U.S.C. 802(c), and
placed on the calendar
_______________________________________________________________________
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''.
Resolved by the Senate and House of Representatives of the United
States of America in Congress assembled, That Congress disapproves the
rule submitted by the Internal Revenue Service relating to ``Interim
Guidance Simplifying Application of the Corporate Alternative Minimum
Tax to Partnerships'' (IRS Notice 2025-28), and such rule shall have no
force or effect.
Calendar No. 297
119th CONGRESS
1st Session
S. J. RES. 95
_______________________________________________________________________
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''.
_______________________________________________________________________
December 18, 2025
Committee discharged, by petition, pursuant to 5 U.S.C. 802(c), and
placed on the calendar