Steve Dixon Comments on Tax Cases to Watch in Law360
"5 Federal Tax Cases to Watch in the 2nd Half of 2020"
Steve Dixon commented on upcoming federal tax cases challenging recent Treasury Regulations. Those Regulations provide for rules under the global intangible low-taxed income (GILTI) and transition tax provisions that were enacted as part of the Tax Cuts and Jobs Act. In those cases (Monte Silver et al. v. Internal Revenue Service et al., and Monte Silver and Monte Silver Ltd. v. the Internal Revenue Service et al.), the plaintiff argues that in promulgating those Regulations, Treasury failed to meet procedural requirements under the Administrative Procedure Act (APA). Specifically, the plaintiff argues that Treasury violated the Paperwork Reduction Act and Regulatory Flexibility Act, which provide that when an agency makes rules that affect small businesses, the agency must analyze the recordkeeping and compliance burdens those rules will impose on small businesses. According to the plaintiff, Treasury did not carry out the necessary analyses. Dixon said that other Treasury Regulations are likely vulnerable to similar challenges. "This is another instance of the APA becoming more relevant to the day-to-day practice for tax lawyers," Dixon said.