The US Department of the Treasury and the Office of Management of Budget (OMB) have released a Memorandum of Agreement (MOA) creating a new framework for the review of tax regulations.
The framework is designed to meet the twin objectives of increasing the economic analysis and review of tax rules while preserving timely tax guidance for taxpayers.
Treasury Secretary Steven T. Mnuchin commented: “This updated review framework will increase scrutiny of regulations most likely to impose new costs, while preserving Treasury’s ability to ensure taxpayers receive timely, clear rules and guidance on how to comply with our tax code. Under the agreement, Treasury will continue to swiftly and successfully implement historic tax reform while still avoiding needless regulatory costs and delays.”
In April 2017, President Trump directed the US Treasury and OMB to “review and, if appropriate, reconsider the scope and implementation of the existing exemption for certain tax regulations from the review process set forth in Executive Order 12866.”
Under an agreement adopted in 1983 and reaffirmed in 1993, some Treasury regulations were subject to a review process different from other regulations issued by most executive agencies. Over the decades the agreements had been interpreted to exempt essentially all tax regulations.
The MOA replaces the 1983 agreement with a new review process tailored to tax regulations.
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