Tax Tip of the Week | No. 407 | Treasury Ordered to Review 2016 Tax Regulations

Tax Tip of the Week | May 17, 2017 | No. 407 | Treasury Ordered to Review 2016 Tax Regulations

President Donald Trump recently signed an executive order directing the Treasury Department to review “significant” regulations that were issued in 2016 and 2017 to determine if the regulations cost too much, are too complex, or exceed the IRS’s statutory authority (Presidential Executive Order on Identifying and Reducing Tax Regulatory Burdens (April 21, 2017)).Speaking at the signing ceremony, the president described the executive order as beginning “the process of tax simplification.”The executive order does not define “significant” but does specify that any earlier determination under Executive Order 12866 (Sept. 30, 1993) of whether a tax regulation is significant will not be controlling.The Treasury secretary is directed to produce an interim report within 60 days that identifies all Treasury regulations issued on or after Jan. 1, 2016, that “impose an undue financial burden on taxpayers", “add undue complexity to the Federal tax laws,” or “exceed the statutory authority of the Internal Revenue Service.” Within 150 days, the Treasury secretary is directed to submit to the president recommendations to “mitigate the burden imposed by regulations identified in the interim report.”The Treasury secretary and the director of the Office of Management and Budget were also told to review and reconsider the current system under which many Treasury regulations are exempt from the regulatory review process set forth in Executive Order 12866.You can contact us in Dayton at 937-436-3133 and in Xenia at 937-372-3504.  Or visit our website.Rick Prewitt – the guy behind TTW...until next week.