Menu

Regulatory

Regulatory
If You're Not Already Preparing for Revenue Raisers, You're Not Doing It Right

The Department of the Treasury is steadily making progress on writing guidance for the Tax Cuts and Jobs Act and have announced a tentative release schedule: June/July for the passthrough deduction, late summer/early fall for the new limitations on interest expense, and December for the big international provisions (e.g. GILTI and BEAT).

 

In the meantime, the Committee on Ways and Means is contemplating a second round of tax cuts, or Tax Reform 2.0 as they like to call it. They are aiming to make permanent the new individual provisions as well as full expensing for businesses.

After months of trading punches Director Mick Mulvaney of the White House’s Office of Management and Budget (OMB) and Treasury Secretary Steven Mnuchin released a memorandum of agreement (MOA) that creates a new framework for writing, reviewing, and implementing tax regulations.  In short, the MOA requires OMB’s Office of Information and Regulatory Affairs (OIRA) to review major tax regulations—just as it does major rulemakings from any other executive branch agency.  This is a fundamental change from a 1983 agreement, under which Treasury had hitherto operated, that exempted most tax regulations from review.

On Wednesday, the House Ways and Means Committee marked up and unanimously reported 12 bills to reform the IRS. The bipartisan packaged was sponsored by Oversight Subcommittee Chairman Lynn Jenkins (R-KS) and Ranking Member John Lewis (D-GA) and is designed to modernize the IRS and improve customer service. The package requires the IRS to send Congress by September 30, 2020 a comprehensive written plan for reorganizing the agency, including priorities laid out by lawmakers.
The IRS ruled that taxpayers who prepaid their 2018 property taxes may still be able to deduct the entire amount from their 2017 federal taxes without regard to the $10,000 limit imposed by the Tax Cut and Jobs Act.

As part of their ongoing implementation of the partnership audit system created by 2015's Balanced Budget Act, the IRS has again released guidance on how partnerships can pay adjustments after an audit.


Executive Orders and Presidential Memoranda Issued by the Trump Administration (Post #5)
Since our last post on March 1, President Trump has issued 15 more Executive Orders and Presidential Memoranda. Click the link below for summaries of each action.
Executive Orders and Presidential Memoranda Issued by the Trump Administration (Post #4)
Since our last post on February 14, President Trump has issued three more Executive Orders. The pace is slowing, so we are posting less often, but we will continue to keep you updated. Click the link below for summaries of each action.
House Marks Up More Regulatory Reform Bills This Week
On February 14, the House Oversight and Government Reform Committee marked up a number of regulatory reform bills, including the "Searching for and Cutting Regulations that are Unnecessarily Burdensome (“SCRUB”) Act of 2017," the "Regulatory Integrity Act of 2017," and the "OIRA (“Office of Information and Regulatory Affairs”) Insight, Reform and Accountability Act." Meanwhile, more regulatory reform bills continue to be introduced in the House.  Read more by clicking on the link below.
Executive Orders and Presidential Memoranda Issued by the Trump Administration (Post #2)
Since our last post on January 25, President Trump has issued eight more Executive Orders and Presidential Memoranda. Click the link below for summaries of each action.
Trump Signs Executive Order Requiring Two Regulations be Rescinded for Every New Regulation

On January 30, President Trump signed a “Presidential Executive Order on Reducing Regulation and Controlling Regulatory Costs,” which is intended to zero-out regulatory costs by eliminating two regulations for every one implemented. The order goes into effect immediately and requires the cost of all regulations in fiscal year 2017, which ends September 30, to equal zero.

Navigation