Identifying and Reducing Tax Regulatory Burdens

Impact dates

1. Mar 17, 2018

   Initial progress report if actions not finalized (180 days after report submission)

2. Sep 18, 2017

   Final report with mitigation recommendations due

3. Jun 20, 2017

   Interim report identifying burdensome regulations due

4. May 1, 2017

   Federal Register summary of actions due (10 days after finalization)

Key directives

• Review all significant tax regulations issued on or after January 1, 2016
• Identify regulations imposing undue financial burden, adding undue complexity, or exceeding IRS statutory authority
• Submit interim report within 60 days
• Submit final report with mitigation recommendations within 150 days
• Publish final report in Federal Register
• Delay or suspend effective dates of targeted regulations to extent permitted by law
• Modify or rescind regulations through notice and comment rulemaking as appropriate
• Publish summary of actions in Federal Register within 10 days of finalization
• If actions not finalized within 180 days of report submission, publish initial progress report
• Review and reconsider scope of tax regulation exemption from EO 12866 review
• Revise IRM section 32.1.5.4.7.5.3 if necessary

Who is ordered

• Secretary of the Treasury · Treasury
• Administrator of the Office of Information and Regulatory Affairs · Office of Management and Budget
• Director of the Office of Management and Budget · Office of Management and Budget

Timeline

Risks & tensions

• Legal uncertainty around 'to the extent permitted by law' limitations on suspending effective dates
• Potential conflict with prior administrative determinations of significance under EO 12866
• Vague standard for 'undue' burden/complexity creates implementation discretion
• Could affect tax regulations from Obama administration's final years, raising political salience
• Regulatory uncertainty for businesses during review period