IRS Halts Rules, But Lawyers Hope for Some Muni Infrastructure Guidance

WASHINGTON – The Internal Revenue Service won't be issuing any rules or significant guidance for a while in the wake of President Trump's regulatory actions, an IRS official said at conference sponsored by the Practising Law Institute in New York on Monday.

Bond lawyers have been hoping the Treasury and IRS would issue final public approval rules for private activity bonds as well as reissuance rules that would, among other things, deal with private placements and bank loans.

Those will certainly have to wait, but Tom Vander Molen, a lawyer at Dorsey & Whitney in Minneapolis and head of the National Association of Bond Lawyers' tax committee, is hoping rules and guidance aligned with Trump's policies will move forward.

"When any new administration begins, there tends to be a pause in the issuance of administrative guidance," he said. "But I am hopeful that Treasury soon will be open to liberalizing tax guidance in the area of public finance, particularly as it relates to infrastructure matters, because investment in infrastructure is part of President Trump's platform.

Tax Analysts' TaxNotes reported Tuesday that Robert Wellen, IRS associate chief counsel for corporate tax issues, said at the PLI conference that, after discussing the matter with Treasury Department officials, the IRS will no longer submit guidance to the Federal Register or the Internal Revenue Bulletin beyond the most routine administerial guidance.

A Jan. 20 memo from Reince Priebus, the president's assistant and chief of staff, to the heads of executive departments and agencies said no regulation, except regarding health or security emergencies, should be sent to the Federal Register until it has been reviewed and approved by a department or agency head or someone they delegate.

A Jan. 30 executive order signed by President Trump on "Reducing Regulation and Controlling Regulatory Costs" said that for every new regulation issued, at least two prior regulations must be identified for elimination.

Wellen said the restrictions are very broad and will cover rules and significant guidance. However the IRS will continue to release private letter rulings and chief counsel advice memoranda, he said, according to TaxNotes.

For reprint and licensing requests for this article, click here.
Tax Washington
MORE FROM BOND BUYER