CHA News Article

Treasury Department Issues Recommendations for Reducing Regulatory Burden

The U.S. Department of the Treasury released a report on Oct. 4 recommending actions for eight previously identified regulations that “impose an undue financial burden,” “add undue complexity” or exceed the Internal Revenue Service’s statutory authority. The review of the regulations is part of President Trump’s Executive Order 13789, which further directs the Secretary to submit “specific actions to mitigate the burden imposed” by the identified regulations. The report recommends that two proposed regulations be withdrawn entirely, three temporary or final regulations be revoked in substantial part and the remaining three regulations be substantially revised. 

One of the regulations the report notes as needing substantial revision is under Section 337(d) on Certain Transfers of Property to Regulated Investment Companies and Real Estate Investment Trusts. Investor-owned hospitals and not-for-profit hospitals with taxable subsidiaries or interests should review the report to determine applicability.