Close
Close

Treasury identifies eight regulations subject to modification and potential repeal

RFP
Treasury identifies eight regulations subject to modification and potential repealThe Treasury Department on July 7 issued Notice 2017-38, which identifies eight regulations — including those issued under Section 385 — that could be subject to some reform, including modification, streamlining, or potential repeal.

Executive Order 13789, which was issued on April 21 by President Trump, ordered Treasury to review all “significant tax regulations” issued on or after Jan. 1, 2016, and to submit a report within 60 days that identifies those regulations that either (1) impose an undue burden on U.S. taxpayers, (2) add undue complexity to federal tax laws or (3) exceed the statutory authority of the IRS. The eight regulations identified in the notice meet at least one of the first two criteria, meaning Treasury does not believe that the IRS has exceeded its statutory authority for any of those regulations.

It is not yet clear what actions Treasury will take with regard to each of these regulations, though the notice states Treasury intends to propose reforms to mitigate burdens on taxpayers. Such modifications may include full repeal of the regulation. For now, Treasury is requesting comments, which are due on Aug. 7, on whether these regulations should be rescinded or modified, and if the latter, how the regulations should be modified to reduce burdens and complexity.

For more information, see Tax Flash 2017-04.

Contact:
Dustin Stamper
Director, Washington National Tax Office
T +1 202 861 4144

Shamik Trivedi
Manager, Washington National Tax Office
T +1 202 521 1511

Tax professional standards statement
This content supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.

The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.