The Treasury Department this morning released a report proposing the revocation or revision of eight significant Obama-era regulations.  Among other proposals, the Treasury Department is considering revoking the “documentation rule” promulgated under Section 385 and the regulations changing the allocation of partnership liabilities for purposes of determining whether a disguised sale has occurred.  The “bottom dollar” guarantee rules for partnership liabilities would be retained, however, as would the “per se” rule of the Section 385 regulations, at least for now, pending tax reform.   Additional proposals include providing an exception to the new Section 367 regulations for transfers of foreign goodwill and going concern value in situations unlikely to be abusive and providing additional time and flexibility for the implementation of new rules under Section 987.

The Treasury Department report was delivered to President Trump on September 18 in response to an executive order requiring a review of all significant tax regulations issued after January 1, 2016.