IMO, limiting the losses should require passage of a new law by Congress. That is not to say they can't arrange for that, but it should take some time. I found the idea that they are going to use the information they have to identify more hobby losses more interesting. If they just automatically send letters requiring anyone who hasn't shown a profit in at least two of the last five years requiring them to prove they are not a hobby, they may increase revenue from this area. It would be interesting to see the results of such a program.