Taxand USA looks at the current state of the Section 987 regulations.

 

If the Trump administration believed tax reform to be an easier initiative than health care, the last few weeks have been a rude wake-up call. Disagreement is rife within the GOP over fundamental aspects of reform: the border adjustment, how far to drop the corporate tax rate and what tax preference items should be eliminated, to name a few — not to mention the budgetary accountants who are trying to rub two nickels together to make a trillion dollars.

 

While creation is proving difficult for the Trump administration, destruction has a certain appeal of simplicity; namely, destruction of regulations issued by the previous administration. In April, President Trump signed an executive order on Identifying and Reducing Tax Regulatory Burdens. This order directed Treasury Secretary Steven Mnuchin to review all new tax regulations issued since 1 January 2016 and, within 60 days, identify those that are financially burdensome, overly complex or beyond the authority of the Internal Revenue Service.

 

Discover more: The current state of the Section 987 regulations

Thank you for downloading

For similar content to our Global Guide, subscribe to our mailing list and keep up to date.

* indicates required
Megaphone Icon

Taxand's Take

Since the release of this article, the Treasury Department has issued Notice 2017-38, stating that the Section 987 regulations, among others, may require modification or rescission per President Trump’s April 2017 executive order. An upcoming edition will discuss this notice and its potential implications in more detail.

Crosshairs Icon

Article tags

International Tax | USA

Newsletter

Keep up to date with news, views and insights from Taxand

Search