<p>This research employs a unique measure derived from the federal register to investigate the association between regulatory fragmentation and corporate tax avoidance in the United States (U.S.). I find a significant negative association between regulatory fragmentation and tax avoidance, a result that remains consistent across various robustness tests. Additionally, the study indicates that the impact of regulatory fragmentation is more pronounced in larger firms and is moderated among firms operating in competitive markets, suggesting that the negative relation between regulatory fragmentation and tax avoidance is ascribed to increased regulatory scrutiny and elevated market barriers. Moving away from the predominantly negative portrayal of regulatory fragmentation in prior studies, this research highlights the need for sophisticated regulatory policies and corporate strategies that intricately balance the complexities of regulatory frameworks with business conduct.</p>