The U.S. Treasury Department today announced a “memorandum of agreement” with the Office of Management and Budget (OMB) concerning tax regulations.
The memorandum of agreement (MOA) [PDF 615 KB] establishes a framework for the review of tax regulations by the Office of Information and Regulatory Affairs (OIRA) within OMB.
According to the MOA:
According to a related Treasury Department release, today’s MOA replaces one from 1983 to provide a new review process tailored to tax regulations and that focuses on “reducing regulatory burdens while providing timely guidance to taxpayers.”
Read the 1983 MOA [PDF 646 KB]
Treasury’s regulatory review process in general and the role of OIRA in reviewing certain regulations prior to the MOA announced today was addressed in a September 2016 report from the U.S. Government Accountability Office. Read TaxNewsFlash
President Trump in January 2017 signed an executive order with a goal of reducing regulations and controlling regulatory costs. Read TaxNewsFlash
Subsequently, in April 2017, the president signed a second executive order directing the U.S. Treasury to examine recent tax regulations to determine whether any of the regulatory projects: (1) imposed an undue financial burden on U.S. taxpayers; (2) added undue complexity to the federal tax laws; or (3) exceeded the statutory authority of the IRS. Treasury was directed to review “significant tax regulations” issued on or after January 1, 2016, and to issue a report. The final report was issued in October 2017, and listed eight regulatory projects—including documentation regulations under section 385—that were being withdrawn, partially revoked or substantially revised. Read TaxNewsFlash
These executive orders in 2017 reference Executive Order 12866 [PDF 36 KB] released in September 1993.
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