Reince Priebus, Assistant to the President and Chief of Staff, on January 20, 2017, sent a memorandum to heads of executive departments and agencies, on behalf of President Trump, directing a temporary freeze on new and pending regulations, pending review by the incoming administration.
Subject to exceptions for certain emergencies and other urgent situations (and for regulations subject to statutory or judicial deadlines), the memorandum requests that:
The memorandum applies to “any substantive action by an agency (normally published in the Federal Register) that promulgates or is expected to lead to the promulgation of a final rule or regulation, including notices of inquiry, advance notices of proposed rulemaking, and notices of proposed rulemaking,” and also covers any agency statement of general applicability and future effect “that sets forth a policy on a statutory, regulatory, or technical issue or an interpretation of a statutory or regulatory issue.”
Reince Priebus’s memorandum does not include a special exception for tax regulations.
It is common for a new administration to issue a temporary freeze on some regulations. See, for example, the memorandum issued by Rahm Emanuel (President Obama’s then Chief of Staff) on January 20, 2009, and the memorandum issued by Andrew H. Card (President George W. Bush’s then Chief of Staff) on January 20, 2001.
© 2018 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.