Questions Linger About Impact Of Executive Order On Tax Regs
February 15, 2017
CCH Standard Federal Tax Reports
Two weeks after President Trump issued an executive order on federal regulations, questions remain about the scope of the directive. The federal Office of Management and Budget (OMB) has issued a memorandum about the executive order, commonly referred to as the “two-for-one” order. However, the OMB memorandum does not specify if tax regs are exempt from the executive order.
Take Away. “It is unclear if the executive order applies to tax regulations,” Amanda Wilson, Shareholder, Lowndes, Drosdick, Doster, Kantor & Reed, P.A, Orlando, told Wolters Kluwer. “On its face, it would appear to. However, the executive order states that it does not impair authority granted by law to an agency. Treasury has a general grant of authority under Section 7805 to issue regulations as needed to implement the Internal Revenue Code. So it would appear that at least ‘needed regulations’ should be excluded. We will have to wait and see how IRS and Treasury react.”
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