In a January 31 executive order (EO), President Trump once again made Treasury tax regulations subject to White House review. Office of Information and Regulatory Affairs (OIRA) review of tax regulations was not required until President Trump’s first term, from 2017 to 2021. But then-President Biden reversed that order, again exempting tax regulations from OIRA review. Now, per this latest Trump EO, IRA will again be reviewing proposed tax regulations.
The EO also requires each agency to eliminate 10 existing regulations for every new regulation (or other guidance) proposed.
The restoration of an OIRA review requirement for tax regulations is controversial. Opponents say that OIRA lacks the subject matter expertise needed to adequately review proposed tax regulations, which are often complex. Further, they say, OIRA review slows the process. However, supporters say OIRA review adds transparency and accountability by the Treasury and Internal Revenue Services (IRS). It also gives impacted stakeholders additional opportunity to weigh in on proposed new rules, they say.
Prospects: Tax regulations are often (maybe virtually always) as fraught as the legislation from which they derive their authority. Another layer of review makes the process more time-consuming and complicated, but can give impacted stakeholders another chance to change or even eliminate bad regulatory decisions.
NAIFA Staff Contacts: Diane Boyle – Senior Vice President – Government Relations, at dboyle@naifa.org; or Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org.