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July 7, 2017
2017-1086

Treasury identifies eight regulations under Executive Order review

The Treasury Department on July 7, 2017, identified eight regulations, including Final and Temporary Regulations under Section 385 on the Treatment of Certain Interests in Corporations as Stock or Indebtedness, as imposing an undue financial burden on US taxpayers or adding undue complexity to Federal tax laws.

An Executive Order signed by President Trump April 21 called for Treasury to review all "significant tax regulations" issued on or after January 1, 2016, and to identify in an interim report those that impose undue financial burden, add undue complexity, or exceed statutory authority. The order further instructed Treasury to submit a final report to the President by September 18, 2017, recommending "specific actions to mitigate the burden imposed by regulations identified in the interim report."

Notice 2017-38 identified specific regulations as unduly burdensome or complex and said, "Treasury intends to propose reforms — potentially ranging from streamlining problematic rule provisions to full repeal — to mitigate the burdens of these regulations in a final report submitted to the President."

The eight regulations identified in Notice 2017-38 are:

1. Proposed Regulations under Section 103 on Definition of Political Subdivision (REG-129067-15)

2. Temporary Regulations under Section 337(d) on Certain Transfers of Property to Regulated Investment Companies (RICs) and Real Estate Investment Trusts (REITs) (T.D. 9770)

3. Final Regulations under Section 7602 on the Participation of a Person Described in Section 6103(n) in a Summons Interview (T.D. 9778)

4. Proposed Regulations under Section 2704 on Restrictions on Liquidation of an Interest for Estate, Gift and Generation-Skipping Transfer Taxes (REG-163113-02)

5. Temporary Regulations under Section 752 on Liabilities Recognized as Recourse Partnership Liabilities (T.D. 9788)

6. Final and Temporary Regulations under Section 385 on the Treatment of Certain Interests in Corporations as Stock or Indebtedness (T.D. 9790)

7. Final Regulations under Section 987 on Income and Currency Gain or Loss With Respect to a Section 987 Qualified Business Unit (T.D. 9794)

8. Final Regulations under Section 367 on the Treatment of Certain Transfers of Property to Foreign Corporations (T.D. 9803)

Treasury requested comments by August 7, 2017, on whether the regulations described in the Notice should be rescinded or modified, and how they should be modified. The Notice is attached.

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Contact Information
For additional information concerning this Alert, please contact:
 
Washington Council Ernst & Young
   • Any member of the group, at (202) 293-7474;.

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ATTACHMENT

Notice 2017-38

 

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