AICPA Criticizes Executive Order on Regulations

March 10, 1981

The Honorable George Bush
Vice President of the United States
Washington, DC 20510

Dear Mr. Vice President:

I am writing to you in your capacity of chairman of the Presidential Task Force on Regulatory Relief. The Federal Tax Division of the AICPA is concerned with the effect of Executive Order 12291 as it relates to Treasury regulations, revenue rulings, and revenue procedures. Our concern is that its requirements will seriously impede the issuance of much needed tax guidance, and we would urge that a permanent, blanket exemption be allowed for the issuance of tax regulations, rulings, and procedures.

By way of background, the American Institute of CPAs is the national organization representing approximately 165,000 certified public accountants. Many of our members are engaged in helping taxpayers prepare and file tax returns and in rendering tax advice and guidance.

Regulatory reform, in general, is a desirable objective and efforts in furtherance of this goal are highly commendable. Such reform may well result in fewer, but much better, regulations and there are, undoubtedly, many areas of burdensome over-regulation.

However, the concerns of tax regulations are quite the contrary. While many agencies issue regulations that are virtually the statutory procedures under which one must operate, and are thus often burdensome to those effected, tax regulations generally provide guidance and interpretation to an increasingly complex Internal Revenue Code. Tax regulations, rulings, and procedures are technical in nature; often mandated by statute; and offer the mechanical requirements which one must follow to comply with the tax law. The taxpayer and tax advisors are given direction in those areas in which they are effected by particular circumstances rather than being required to follow a set of mandated standards.

In fact, the general complaint on tax regulations is that they are too slow in being issued, thus failing to provide taxpayers and advisors with the guidance and certainty needed to plan actions. By adding another layer of analysis and review, this process will be all the more impeded. Obviously, this is not the intent of Executive Order 12291, but would be the natural result.

Accordingly, we respectfully request that tax matters be exempted from the requirements of Executive Order 12291 in furtherance of the public interest. I would be glad to discuss this matter further with whomever you may wish to designate should you deem that to be necessary.

Sincerely,

William L. Raby
Chairman
Federal Tax Division
AICPA
Washington, DC

cc:
The Honorable Donald Regan, Secretary of the Treasury
David Stockman, Director, Office of Management and Budget
John Chapoton, Assistant Secretary of the Treasury, Tax Policy