Relief from Retroactive Application of Regulations
TAXPAYER BILL OF RIGHTS II
12. TITLE XI--RELIEF FROM RETROACTIVE APPLICATION OF TREASURY DEPARTMENT REGULATIONS
12.1. Relief From Retroactive Application Of Treasury Department Regulations. Under section 7805(b), Treasury may prescribe the extent (if any) to which regulations shall be applied without retroactive effect. The new law provides that temporary and
proposed regulations must have an effective date no earlier than the date of publication in the Federal Register or the date on which any notice substantially describing the expected contents of such regulation is issued to the public. Any regulations
filed or issued within 18 months of the enactment of the statutory provision to which the regulation relates may be issued with retroactive effect.
This general prohibition on retroactive regulations may be superseded by a legislative grant authorizing the Treasury to prescribe the effective date with respect to a statutory provision. The Treasury may issue retroactive temporary or proposed
regulations to prevent abuse. The Treasury also may issue retroactive temporary, proposed, or final regulations to correct a procedural defect in the issuance of a regulation. Treasury may provide that taxpayers may elect to apply a temporary or proposed
regulation retroactively from the date of publication of the regulation. Final regulations may take effect from the date of publication of the temporary or proposed regulation to which they relate. The provision does not apply to any regulation relating
to internal Treasury Department policies, practices, or procedures. Present law with respect to rulings is unchanged. The provision applies with respect to regulations that relate to statutory provisions enacted on or after the date of enactment. TPBR2 §1101. IRC §7805(b).SEC. 1101 OF THE BILL
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