There is no question that there is an overabundance of regulations at all levels of government, and especially the Federal government. The Internal Revenue Service, one of the Federal government’s largest agencies, is no exception. To their credit, however, that agency has been lining up a major “to do” list for revoking unnecessary and outdated Treasury regulations.
Last year, the Treasury Department and the Internal Revenue Service initiated a comprehensive review of all tax regulations to identify those that are unnecessary, overly complex, or excessively burdensome. In October 2017, the Treasury Department revealed that the Internal Revenue Service had already identified over 200 regulations for potential revocation.
In a recent notice of proposed rulemaking, the Internal Revenue Service has increased this list to 298 regulations. According to the agency, these regulations are no longer necessary because they do not have any current or future applicability under the Internal Revenue Code.
The identified regulations fall into three categories:
- regulations that interpret Code provisions that have been repealed;
- regulations that do not account for significant revisions to Code sections; and
- regulations that, by the terms of the relevant Code provisions or the regulations themselves, are no longer applicable.
The Internal Revenue Service is asking for comments on the proposed rulemaking by May 14 of this year.
For additional details about which regulations are proposed for removal and how to submit your feedback, download the IRS Proposed Rule Document