Treasury Identifies Eight Regulations Subject To Modification And Potential Repeal

The 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 (EO) 13789, which was issued on April 21 by the president, 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. The eight regulations have been narrowed down from a universe of 105 total regulations issued after Jan. 1, 2016. The notice states that of