Counsel Andy Weiner wrote an article for Forbes titled “The Supreme Court’s New Standard For Challenging Tax Regulations.”
The article notes that the “Supreme Court is reshaping the role of the administrative state in the federal government,” most notably, through its 2024 decision in Loper Bright Enterprises v. Raimondo abandoning Chevron deference whereby courts deferred to an agency’s interpretation of an ambiguous statute that the agency is charged with administering. Other impactful cases that will have a hand in reshaping the legal landscape of administrative and tax law include Corner Post, Inc. v. Board of Governors of the Federal Reserve System, Securities and Exchange Commission v. Jarkesy, and the upcoming Federal Communications Commission v. Consumer Research.
In the article, Andy takes a closer look at the potential impact of Loper Bright on Treasury regulations. He notes, “There is no question that challenges to Treasury Regulations in general stand a better chance under Loper Bright and that such challenges will increase. But how much of a difference Loper Bright will make is an open question, and there are reasons to think that the impact won’t be earth-shattering.”
As Andy explains, Chevron deference had been falling out of favor for a long time, Treasury had gotten better at justifying its interpretation of statutes, and courts are not inclined to defy Treasury for fear of unintended consequences. “Let’s see how courts handle Treasury Regulations where the statute is less of a guide. Among the most complex regulatory schemes, such as the transfer pricing rules and consolidated return rules, are offspring of the most meager of statutes. Those types of challenges are pending,” Andy writes.
You can read the full Forbes article here.
Andy focuses on tax controversies, both civil and criminal, in trial and appellate courts and at the agency level. He is also a fellow of the American College of Tax Counsel and a frequent writer and speaker on tax issues.
