Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for July 12, 2025 – July 29, 2025.
IRS guidance
July 15, 2025: The IRS issued Revenue Ruling 2025-14, providing prescribed rates for federal income tax purposes for August 2025, including but not limited to:
- Short-, mid-, and long-term applicable federal rates for August 2025 for purposes of Internal Revenue Code (Code) Section 1274(d).
- Short-, mid-, and long-term adjusted applicable federal rates for August 2025 for purposes of Code Section 1288(b).
- The adjusted federal long-term rate and the long-term tax-exempt rate, as described in Code Section 382(f).
- The appropriate percentages for determining the low-income housing credit described in Section 42(b)(1) for buildings placed in service during the current month.
- The federal rate for determining the present value of an annuity, an interest for life, a term of years, a remainder, or a reversionary interest for purposes of Code Section 7520.
July 15, 2025: The IRS issued Notice 2025-39, providing guidance on the corporate bond monthly yield curve, corresponding spot segment rates under Code Section 417(e)(3), and the 24-month average segment rates under Code Section 430(h)(2). The notice also provides guidance on the interest rate for 30-year Treasury securities under Code Section 417(e)(3)(A)(ii)(II) (for plan years in effect before 2008) and the 30-year Treasury weighted average rate under Code Section 431(c)(6)(E)(ii)(I).
July 16, 2025: The IRS issued Revenue Ruling 2025-15, clarifying certain withholding and reporting requirements with respect to uncashed retirement plan distribution checks. The IRS held that no adjustment or refund is available under Sections 6413 and 6414 with respect to amounts withheld and remitted when more than the correct amount of tax was not withheld or paid.
July 16, 2025: The IRS issued Notice 2025-40, providing updated static mortality tables for defined benefit pension plans under Code Section 430(h)(3)(A) and Section 303(h)(3)(A) of the Employee Retirement Income Security Act of 1974 (ERISA). These updated static mortality tables apply for purposes of calculating the funding target and other items for valuation dates occurring during the 2026 calendar year.
The notice also includes a modified unisex version of the mortality tables for determining the minimum present value under ERISA Sections 417(e)(3) and 205(g)(3) for distributions with annuity starting dates that occur during stability periods beginning in the 2026 calendar year.
July 21, 2025: The IRS issued Notice 2025-36, identifying and making obsolete 83 Internal Revenue Bulletin guidance documents. The notice cites Executive Order 14192, Unleashing Prosperity Through Deregulation, which directed agencies to identify regulations to be repealed and other guidance that are appropriate for withdrawal. The 83 obsolete regulations span multiple contexts and Code sections.
July 21, 2025: The IRS issued Notice 2025-37, which includes the inflation adjustment factors and applicable amounts for calendar year 2025 for the zero-emission nuclear power production credit under Code Section 45U. It also includes the adjustment factors for the clean hydrogen production credit under Section 45V and the clean fuel production credit under Section 45Z.
- For Section 45U, the inflation adjustment factor for calendar year 2025 is 1.0242.
- For Section 45V, the inflation adjustment factor for calendar year 2025 is 1.0611.
- For Section 45Z, the inflation adjustment factor for calendar year 2025 is 1.0611.
July 22, 2025: The IRS issued Revenue Procedure 2025-26, with indexing adjustments for the applicable dollar amounts under Sections 4980H(c)(1) and (b)(1). These indexed amounts are used to calculate the employer shared responsibility payments under Sections 4980H(a) and (b)(1). The US Department of Health and Human Services published the premium adjustment percentage for 2026 back in June.
July 23, 2025: The IRS issued guidance to improve the Large Business & International Examination Process. The guidance is intended to reduce case cycle times for corporate taxpayers, making examinations more consistent and efficient. The memo specifically provides guidance on:
- Phasing out the Acknowledgement of Facts Information Document Request process in examinations by 2026.
- Clarifying that Accelerated Issue Resolution applies to large corporate cases.
- Improving the Fast Track Settlement (FTS) process to require further internal reviews and approvals before a taxpayer’s FTS request is denied.
July 29, 2025: The IRS issued Notice 2025-28, providing interim guidance to reduce compliance burdens and costs associated with applying the corporate alternative minimum tax (CAMT) to partnerships and CAMT entity partners. The US Department of the Treasury and the IRS also announced their intention to partially withdraw the CAMT proposed regulations and issue revised proposed regulations. The proposed regulations will include rules similar to the interim guidance provided in Sections 3 to 7 of Notice 2025-28 as it relates to the application of Sections 56A(c)(2)(D) and 56A(c)(15)(B).
The IRS also released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums, and Chief Counsel Advice).