President Trump's Treasury Department will change or undo a late Obama administration rule intended to curb corporate inversions, the IRS said in a notice Friday.
The rule was included in a list of burdensome regulations that Trump requested a review of in an April executive order. The IRS said Friday that it was seeking comments on possible changes.
The Obama Treasury finalized the rule in October, hustling in an attempt to limit companies from moving their headquarters to low-tax countries through inversions. The rule would limit businesses' ability to shift taxable income out of the U.S. through the strategic issuance of debt.
The rule met fierce opposition from business groups, which warned that the rule went too far and would affect routine business management of debts.
Companies have increasingly sought to move their headquarters to low-tax jurisdictions in recent years. They also have faced the prospect of buyouts from foreign companies. Republicans have argued that tax reform will solve the problem by making the U.S. more attractive to businesses, largely by lowering the corporate tax rate, which is the highest among developed countries.
The Obama administration finalized the rule after failing to achieve tax reform or narrower anti-inversion legislation.