OMB completes first expedited review of GOP tax law regulation

A top Office of Management and Budget (OMB) official said Thursday that the agency has completed its first review of a proposed rule to implement the GOP tax law under a process agreed to with the Treasury Department in April.

Neomi Rao, administrator of OMB’s Office of Information and Regulatory Affairs (OIRA), said that her office has finished a review of regulations concerning the new tax law’s transition tax on corporations’ untaxed foreign earnings.

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In the past, tax rules had largely been exempt from OIRA review, but OMB and Treasury released a memo in April that gave OIRA greater oversight of tax regulations.

The memo specified that rules to implement the Tax Cuts and Jobs Act (TCJA) can be designated for an expedited review that would take no more than 10 business days, subject to extensions.

A senior administration official said that OMB completed the review within the 10 business day period, and that during the review comments were given to Treasury to ensure that the regulations are in line with presidential priorities and have benefits that outweigh costs.

“As was intended with the [memo], the review process was comprehensive, transparent, and timely,” Rao said in a statement. “We look forward to working with Treasury on future TCJA regulations in order to ensure the maximum regulatory benefits for American taxpayers. “

A Treasury spokesperson said that the review didn’t lead to any substantive changes to the rule on the transition tax, and that the department plans to give the rule to the Federal Register promptly.

OIRA is also currently in the process of reviewing proposed rules relating to the computation of the tax law’s new 20-percent deduction for income from non-corporate businesses known as “pass-throughs.”