IRS Reluctantly Follows the APA for Monetized Installment Sales

Tax attorney Joshua Odintz published an article in Bloomberg Tax analyzing the IRS' adherence to the rulemaking process outlined in the Administrative Procedures Act (APA). Recently, the IRS and U.S. Department of the Treasury published a Notice of Proposed Rulemaking to treat certain monetized installment sales as listed transactions, meaning these transactions will be subject to additional disclosure requirements. As Mr. Odintz explains, although listing the transactions is no surprise, what is surprising is the IRS and Treasury Department's choice to follow formal rulemaking procedures to do so, as they historically argued the APA did not apply to tax regulations. More recent case law, however, seems to be turning the tide. In this article, Mr. Odintz explains what the finalized regulations would do as well as breaks down the key court decisions concerning the application of APA to IRS regulations.

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