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Treasury Announces Changes to Tax Regulatory Process

March 25, 2019

The U.S. Treasury Department and the U. S. Internal Revenue Service (IRS) announced that they are making changes to their guidelines for issuing tax guidance, including adding a statement of good cause to temporary regulations and restricting notices of proposed regulations. The “Policy Statement on the Tax Regulatory Process” (PDF), signed by Assistant Secretary for Tax Policy David Kautter and General Counsel Brent McIntosh, says that it is intended to “clarify and affirm [the government’s] commitment to sound regulatory practices.” It first reaffirms Treasury and the IRS’s commitment to follow the notice-and-comment process in the Administrative Procedure Act (APA), P.L. 79-404, even though interpretive rules (which many IRS regulations qualify as) are exempt from the APA’s process.