While 2025 is being hailed as “Tax Super Bowl” — or, in some corners, “Tax Armageddon” — the growing possibility of divided government in Washington next year has some predicting the tax fight could stretch into 2026 and beyond.
Deep ideological differences could make striking a long-term agreement on major expiring tax provisions difficult if control of the House, Senate and White House is split among Democrats and Republicans next year. That raises the odds of a short-term extension, although even that comes with challenges, leading some to speculate Congress could slip past the Dec. 31, 2025, deadline.
“I think we ought to be prepared for the possibility that doesn’t happen by the end of the year,” John Gimigliano, principal-in-charge of federal tax legislative and regulatory services at KPMG, said at a press briefing this month. “I mean, I don’t know what you’ve seen from Congress in recent years to convince you that they’re really good at dealing with deadlines.”
