Tagproposed regulations

Do Tax Regs Have an Out From the New 2-1 Rule?

By:  Amanda Wilson

As I previously discussed (here), President Trump issued an Executive Order requiring government agencies to identify two regulations for repeal for every new regulation that they wish to issue.  The initial reaction of this author is that this new rule applies to tax regulations.  But does it?

Section 5(a)(i) of the Executive Order states that it does not impair or affect authority granted by law to an agency.  Section 7805 provides a general grant to the Treasury Secretary of authority to prescribe all needful rules and regulations for the enforcement of the Internal Revenue Code.   Does this mean Treasury and IRS do not have to comply with the 2-1 rule?  We will have to wait and see.

Tax Regulations Subject to New 2-1 Rule

Budget, tax form, gavel and dollarsBy:  Amanda Wilson

Yesterday, President Trump signed an executive order that requires government agencies to identify two regulations for repeal for every new regulation that they wish to issue.  This order applies to tax regulations (including proposed regulations), and will force the IRS and Treasury to prioritize  what guidance to issue in the near future.  While the IRS pulled its proposed regulations on the new partnership audit rules last week, guidance in this area is needed and must be forthcoming.  The question is what will be repealed to make way for it?

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