This report reviews the development of the revised federal employment tax deposit regulations issued by the Treasury Department and the Internal Revenue Service (IRS) in September 1992. GAO discusses (1) whether the Treasury and IRS developed the regulations by applying principles from IRS' Compliance 2000 approach, which is designed to improve voluntary taxpayer compliance, reduce taxpayer burden, and increase IRS attention to the needs of those parties affected by its actions; (2) how the process used by Treasury and IRS to develop and revise regulations could be improved; and (3) how Treasury and IRS officials know when their efforts to develop and revise regulations produce regulations that are simple and easy to understand.