June 3 – 17, 2025

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for June 3, 2025 – June 17, 2025.

Commissioner update

June 16, 2025: Billy Long was sworn in as the 51st IRS Commissioner after having been confirmed by the US Senate on June 12. Long served as a US Representative for Missouri’s 7th congressional district from 2011 to 2023. His term will run through November 12, 2027.

IRS guidance

June 12, 2025: The IRS has announced that it is experiencing a delay in processing electronic payments and that some taxpayers are receiving notices indicating a balance due even though payments were timely made.

Taxpayers who receive a balance due notice but electronically paid the tax they owed in full and on time do not need to respond. The IRS has said that any associated penalties and interest will be automatically adjusted once the payment(s) are applied correctly.

June 12, 2025: The IRS released Tax Tip 2025-39, reminding businesses about the Childcare Tax Credit. Taxpayers may receive a credit of up to $150,000 per year to offset 10% of qualified childcare resource and referral costs and 25% of qualified childcare facility costs.

To be eligible for the credit, an employer must have paid or incurred qualified childcare costs during the tax year to provide childcare services to employees. Employers should complete Form 8882, Credit for Employer-Provided Childcare Facilities and Services, to claim the credit. The credit is subject to the carryback and carryover rules for business credits.

June 12, 2025: The IRS issued Notice 2025-33, extending for an additional year the transitional relief provided in Sections 3.01, 3.02, and 3.06 of Notice 2024-59. Notice 2025-33 provides transitional relief from penalties with respect to certain information reporting obligations under Section 6045 and provides transitional relief from the liability for the payment of backup withholding tax required to be withheld under Section 3406 and its accompanying regulators.

This notice also provides transitional relief from penalties for brokers who fail to pay that tax with respect to certain sales of digital assets required to be reported under Section 6045, as well as a digital asset sale relief for certain customers that have not been previously classified by the broker as US persons.

June 13, 2025: The IRS issued Notice 2025-35, providing guidance on the corporate bond monthly yield curve, corresponding spot segment rates under Internal Revenue Code (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).

June 17, 2025: The IRS issued Revenue Ruling 2025-13, providing prescribed rates for federal income tax purposes for July 2025, including but not limited to:

Short-, mid-, and long-term applicable federal rates for July 2025 for purposes of Code Section 1274(d).
Short-, mid-, and long-term adjusted applicable federal rates for July 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 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.

June 17, 2025: The IRS published improvements to its Pre-Filing Agreement (PFA) program to provide greater tax certainty for large business and international taxpayers. The PFA program allows taxpayers under the Large Business and International Division jurisdiction to resolve potential tax issues before filing their return. The program is meant to offer certainty, reduce audit risk, and encourage voluntary compliance.

Key enhancements include:

A redesigned PFA landing page with program statistics, a streamlined process overview, and direct navigation to dispute prevention resources.
New step-by-step instructions to submit a PFA request, including response time expectations and post-submission next steps.
A dedicated PFA page regarding Likely Suitable Issues and Relevant Documents will help taxpayers identify if a PFA request is appropriate for their situation.
Updated program guidelines to help businesses strategically align their PFA submissions with tax filing deadlines.

The IRS also released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums, and Chief Counsel Advice).

Lindsay Keiser, a summer associate in the Washington, DC, office, also contributed to this blog post.