THE TAX LAW ENACTMENT PROCESS

Legislative Process (Steps 1–17)

Regulatory Process (Steps 1–11)

  1. Bill Introduction
    A tax bill is introduced in the House of Representatives.
  2. Referral to House Ways and Means Committee
    Bill is referred to Ways and Means Committee for review.
  3. House Ways and Means Subcommittee
    Subcommittee holds hearings and marks up the bill.
  4. House Ways and Means Full Committee
    Committee debates and reports the bill to the House floor.
  5. House Floor Debate & Amendments
    Full House debates and may amend the bill.
  6. House Vote
    House votes on passage of the bill.
  7. Referral to Senate Finance Committee
    Bill is referred to Senate Finance Committee.
  8. Senate Finance Subcommittee
    Subcommittee holds hearings and marks up the bill.
  9. Senate Finance Full Committee
    Committee debates and reports the bill to the Senate floor.
  10. Senate Floor Debate & Amendments
    Full Senate debates and may amend the bill.
  11. Senate Vote
    Senate votes on passage of the bill.
  12. Second House Consideration
    House decides whether to concur with Senate amendments.
  13. Conference Committee
    Joint committee reconciles differences between House and Senate versions.
  14. Conference Report Vote
    Both chambers vote on the Conference Committee report.
  15. Final Congressional Passage
    Bill is enrolled in its final form.
  16. Presidential Action
    President signs, vetoes, or ignores the bill.
  17. Enactment as Law
    Bill becomes law once enacted.

 

  1. Treasury/IRS Draft Proposed Regulations
    Treasury and IRS draft proposed regulations to implement the law.
  2. Notice of Proposed Rulemaking (NPRM)
    Proposed regulations published for public comment.
  3. Public Comment Period & Hearings
    Written comments are submitted, and public hearings may be held.
  4. IRS Interim Guidance
    IRS may issue temporary guidance during the proposal period.
  5. Review of Comments & Revisions
    Treasury reviews comments and revise the regulations.
  6. Final Regulations Issued
    Final regulations are published and become binding.
  7. Regulations Take Effect
    Regulations become legally effective.
  8. IRS Forms, Instructions & Guidance
    IRS publishes updated forms, instructions, and guidance.
  9. Implementation & Enforcement
    IRS enforces and audits compliance with new rules.
  10. Later Amendments or Guidance
    Additional amendments or clarifications may be issued.
  11. Judicial Review & Litigation
    Courts interpret laws and hear challenges.