OMB’s Office of Information and Regulatory Affairs (OIRA) completed its review of proposed regulations from the U.S. Treasury Department concerning the limitation on the deduction of business interest under section 163(j).
The 2017 tax law (Pub. L. No. 115-97)—the law that is also referred to as the “Tax Cuts and Jobs Act” (TCJA)—added new section 163(j) to the Code, that generally limits the amount of a taxpayer’s business interest deduction.
Treasury regulations that are identified as “major” regulations are subject to review by OMB’s OIRA before being issued, pursuant to Executive Order 13771. OIRA reported its review of the proposed regulations was completed on March 20, 2020.
OIRA has identified the regulations, as follows:
OIRA’s review of the much-anticipated final section 163(j) regulations for the business interest expense deduction limitation was completed January 31, 2020, but those regulations have not yet been released. Some tax professionals expect that the proposed and final regulations will be released together. In any event, the exact date of publication of the regulations in the Federal Register is not known.
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