Relief from Retroactive Application

Temporary and proposed regulations issued by the Treasury. Department generally must have an effective date no earlier than the date:

• of publication in the Federal Register, or 
• on which any notice describing the regulation contents is issued to the public.

Final regulations may take effect from the date of publication of the temporary or proposed regulation to which they relate.

The prohibition on retroactive regulations does not apply to:

• any regulation filed or issued within 18 months of enactment of a new law,
• a legislative grant authorizing the IRS to prescribe the effective date of a regulation for a new law, 
• temporary or proposed regulations issued to prevent abuse,
• temporary, proposed, or final regulations issued to correct a procedural defect in the issuance of a regulation, and 
• any regulation relating to internal Treasury policies, practices, or procedures.

Effective for regulations relating to statutory provisions enacted after the date of enactment.