Kies stated that it was premature to say whether the regulation review legislation will impede tax guidance.
Kies added that the some members of Congress were concerned that certain executive branch administrative agencies were circumventing the notice and comment requirements under the Administrative Procedures Act (APA).
Kies explained that one of the traditional oversight functions of the staff of the Joint Committee is to review the IRS's administration of the tax law.
Kies inquired whether the corporate tax should be viewed as a toll charge for access to public equity markets and, if so, what the proper level of that charge should be.
Kies replied that the JCT should have been given advance notice, but that discussion with Treasury of the tax policy issues raised by the proposed regulations occurred subsequent to their issuance.
Kies said that the JCT would consider the cheek-the-box regulations in the context of the U.S.
Kies said that the legislation posed a number of challenging issues.
Kies replied that, despite the haste with which the 1996 tax legislation was cobbled together, only some minor problems, such as erroneous or conflicting cross-references, had been identified for technical correction so far.
Kies expressed sympathy for companies' predicament, but inquired what more could be done.
Kies said that the JCT's Bluebook on the 1996 tax legislation will suggest that the Treasury Department can and should issue rules ameliorating the application of section 1494(c) to transfers to CFCs.
Kies averred that the inventory of refund review cases was quite low and that the Joint Committee's review was expeditious.