Tax Notes Today Quotes Monte Jackel on Impact of 2-for-1 Regulation Executive Order

Akin Gump senior counsel Monte Jackel has been quoted in the Tax Notes Today article “2-for-1 Regulation Executive Order Raises Questions,” which reports on President Trump’s executive order requiring agencies to identify two regulations to repeal for every new regulation they wish to add. The article says this could pose challenges for the IRS and the Treasury Department in terms of how they prioritize rulemaking, with the IRS already having pulled its much-anticipated partnership audit rules enacted as part of the Bipartisan Budget Act of 2015.

Jackel said the language defining regulations in the executive order is broad enough to include not only final, temporary and proposed regulations, but also revenue rulings and revenue procedures. The requirement issued by the Trump administration, he pointed out, “should make the IRS very picky when it comes to issuing future guidance,” and he added that the requirement would also make the priority guidance plan “a very cumbersome document.”

As an alternative to complying with this new requirement, Jackel said the IRS could obtain a waiver from the head of the Office of Management and Budget, though, if that were to happen, he asked whether that would stop other agencies from doing the same. Instead, Jackel said the procedures to be enacted by the OMB director should include a determination of incremental and offsetting costs under the executive order. “That guidance is not out yet,” he said.