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Taxand USA looks at the recent IRS release of tax regulations.
In the midst of an administration that has been mired in legislative setbacks on both healthcare and tax reform (among various other distractions), President Trump has largely relied on the executive order to further his agenda thus far in Washington, D.C. While orders on U.S. immigration have garnered the most attention in the media, the Executive Order on Identifying and Reducing Tax Regulatory Burdens (the Order) was quietly executed in mid-April.
The Order tasked the U.S. Treasury Department with reviewing all significant tax regulations issued after 1 January 2016 and preparing an interim report within 60 days of the Order identifying all such regulations that:
1) Impose an undue financial burden on United States taxpayers;
2) Add undue complexity to the Federal tax laws; or
3) Exceed the statutory authority of the Internal Revenue Service.
Recently, the IRS released their 60-day interim report in the form of Notice 2017-38 which will ultimately be followed up by a 150-day final report suggesting specific actions to ameliorate the burdens created by the regulations identified in the interim report. The Notice identified eight regulations that were deemed to meet at least one of the first two criteria listed in the Order.
Discover more: IRS releases hotlist of burdensome tax regulations
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For tech companies that have been studying the exceedingly complex regulations under Section 987 and designing a remedial plan for compliance, it may be worth postponing any further action until after the final report is released in September.