Treasury Proposes Repeal of 298 Outdated Tax Regulations

U.S. Treasury Secretary Steven T. Mnuchin proposed repeal of nearly 300 tax regulations.

As detailed in a regulatory notice, proposed for repeal are (i) interpreting regulations on provisions of the tax code that have been repealed, (ii) interpreting regulations on provisions of the tax code that have been significantly revised, and (iii) regulations that are no longer applicable. In addition, the Secretary proposed amendments to remove cross-references to the rules that are proposed for repeal.

The regulations are being proposed for repeal in accordance with two Executive Orders:

• E.O. 13777, which directed each agency to establish a Regulatory Reform Task Force to identify regulations that (i) eliminate jobs or inhibit job creation, (ii) are outdated, unnecessary or ineffective, (iii) impose costs that exceed benefits, (iv) create a serious inconsistency or otherwise interfere with regulatory reform initiatives and policies, (v) are inconsistent with the requirements of the Information Quality Act or OMB Information Quality Guidance issued pursuant to that provision, and/or (vi) derive from or implement Executive Orders or other Presidential directives that have been subsequently rescinded or substantially modified;

• E.O. 13789, which ordered the Secretary of Treasury to modify all significant tax regulations issued on or after January 1, 2016 to enable economic growth, clarify the complex Tax Code and reduce the burden on taxpayers.

Treasury proposed that the removal of regulations become applicable upon publication in the Federal Register. Comments must be submitted by May 14, 2018.