Earlier this year, President Trump issued Executive Order 13789, which ordered the Treasury Department to review all significant tax regulations issued after December 31, 2015 and identify regulations that impose an undue burden (financially or administratively) on taxpayers. The Executive Order then instructed the Treasury Department to recommend specific reform actions that can be taken to mitigate this burden.
On July 7, 2017, the Treasury Department and the Internal Revenue Service took the first step in this process by issuing Notice 2017-38, which identifies eight burdensome regulations that should be reformed. These regulations are:
The next step will be for the Treasury Department and IRS to recommend their proposed reforms for these regulations, which could range from modification to full repeal of the regulations. While it is not yet known to what extent these regulations will be modified or repealed, their identification as burdensome is good news for taxpayers. Many of these regulations have been widely criticized by the tax community, and any changes will likely be beneficial to taxpayers.