OMB’s Office of Information and Regulatory Affairs (OIRA) reported that it has received for review from the U.S. Treasury Department final and proposed regulations 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. Subsequently, the “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act) (Pub. L. No. 116-136) made changes to the section 163(j) rules by temporarily loosening the interest deduction limitation.
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 that it received the following regulations for review on June 15, 2020:
OIRA review of the much-anticipated final section 163(j) regulations (read TaxNewsFlash) for the business interest expense deduction limitation was completed on January 31, 2020, and review of the proposed section 163(j) regulations (read TaxNewsFlash) was completed on March 20, 2020. Both sets of regulations have been returned to OIRA for follow-up review. It is expected that the proposed and final regulations will be released together.
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