Identifying and Reducing Tax Regulatory Burdens

Executive Order 13789 of April 21, 2017

Identifying and Reducing Tax Regulatory Burdens

By the authority vested in me as President by the
Constitution and the laws of the United States of
America, it is hereby ordered as follows:

Section 1. Policy. The Federal tax system should be
simple, fair, efficient, and pro-growth. The purposes
of tax regulations should be to bring clarity to the
already complex Internal Revenue Code (title 26, United
States Code) and to provide useful guidance to
taxpayers. Contrary to these purposes, numerous tax
regulations issued over the last several years have
effectively increased tax burdens, impeded economic
growth, and saddled American businesses with onerous
fines, complicated forms, and frustration. Immediate
action is necessary to reduce the burden existing tax
regulations impose on American taxpayers and thereby to
provide tax relief and useful, simplified tax guidance.

Sec. 2. Addressing Tax Regulatory Burdens. (a) In
furtherance of the policy described in section 1 of
this order, the Secretary of the Treasury (Secretary)
shall immediately review all significant tax
regulations issued by the Department of the Treasury on
or after January 1, 2016, and, in consultation with the
Administrator of the Office of Information and
Regulatory Affairs, Office of Management and Budget,
identify in an interim report to the President all such
regulations that:

(i) impose an undue financial burden on United States taxpayers;

(ii) add undue complexity to the Federal tax laws; or

(iii) exceed the statutory authority of the Internal Revenue Service.

This interim report shall be completed no later than 60
days from the date of this order. In conducting the
review required by this subsection, earlier
determinations of whether a regulation is significant
pursuant to Executive Order 12866 of September 30,
1993, as amended (Regulatory Planning and Review),
shall not be controlling.

(b) No later than 150 days from the date of this
order, the Secretary shall prepare and submit a report
to the President that recommends specific actions to
mitigate the burden imposed by regulations identified
in the interim report required under subsection (a) of
this section. The Secretary shall also publish this
report in the Federal Register upon submitting it to
the President. The Secretary shall take appropriate
steps to cause the effective date of such regulations
to be delayed or suspended, to the extent permitted by
law, and to modify or rescind such regulations as
appropriate and consistent with law, including, if
necessary, through notice and comment rulemaking. The
Secretary shall submit for publication in the Federal
Register a summary of the actions taken in response to
the report no later than 10 days following the
finalization of such actions. Should all such actions
not be finalized within 180 days following the
submission of the report to the President, the
Secretary shall submit for publication in the Federal
Register an initial report summarizing the actions
taken to that point.
(c) To ensure that future tax regulations adhere to
the policy described in section 1 of this order, the
Secretary and the Director of the Office of Management
and Budget shall review and, if appropriate, reconsider
the scope and implementation of the existing exemption
for certain tax regulations from the review process set
forth in Executive Order 12866 and any successor order.

(d) The Secretary shall cause section
32.1.5.4.7.5.3 of the Internal Revenue Manual to be
revised, if necessary to fulfill the directives in
subsection (c) of this section.

Sec. 3. General Provisions. (a) Nothing in this order
shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department or agency, or
the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget
relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented consistent with
applicable law and subject to the availability of
appropriations.
(c) This order is not intended to, and does not,
create any right or benefit, substantive or procedural,
enforceable at law or in equity by any party against
the United States, its departments, agencies, or
entities, its officers, employees, or agents, or any
other person.

THE WHITE HOUSE,

April 21, 2017.