District of Columbia’s Tax Decoupling Dispute: Congressional Disapproval and Ongoing Legal Uncertainty

This alert summarizes recent developments regarding the District of Columbia’s attempt to decouple its local tax laws from the federal One, Big, Beautiful Bill Act (OBBBA) (Public Law 119-21), the congressional response disapproving of the District’s action, and the ongoing legal dispute between District officials over how to administer the 2025 and 2026 tax filing seasons.... By: ArentFox Schiff