Regulations may have retroactive effect in which of the following circumstances:

Question

Quizplus · Accepted Answer

Regulations may have retroactive effect if they are designed to prevent abuse by taxpayers or relate to internal Treasury Department policies, practices, or procedures. However, retroactive regulations are subject to strict scrutiny to ensure that they do not violate fundamental principles of fairness and due process. Regulations can never be effective retroactively if they have the effect of imposing a new liability or burden on taxpayers, as this would be unfair and unconstitutional.

Regulations May Have Retroactive Effect in Which of the Following