Description
Loper Bright and Corner Post, both landmark decisions, represent a sea-change for tax attorneys. Chevron deference no longer applies to tax regulations and even long-standing regulations are vulnerable to challenge, aided by an extended statute of limitations under the Administrative Procedures Act (APA). As a result, tax, partnership, and administrative law attorneys need to scrutinize regulations disputed with the IRS and Department of Justice, and transactional tax attorneys must keep the potential validity of IRS guidance in mind when planning transactions especially when Code provisions are silent. Although partnership provisions grant partners income, loss, debt and cash flow allocation flexibility, partnership anti-abuse rules in Subchapter K of the Code will continue to be used by the IRS when it suspects a reported tax position is abusive.
IRS regulations challenges have already been filed, with more anticipated so it is increasingly important for practitioners to prepare their practice and clients, now! Register today for this critical webcast to learn what these decisions mean for partnership taxes, anti-abuse rules, and become an expert navigator of this uncertain legal landscape.
Sophisticated practitioners will share their expertise during two distinct, one-hour presentations.
- Tax Controversies in the Spotlight: How to Challenge IRS Regulations Today – Learn how to frame IRS regulations in today’s climate under the APA. Topics include:
> The difference between legislative and interpretive regulations and the different standards of deference
> The requirements for regulations in the Administrative Procedure Act
> Considerations in a challenge to the partnership anti-abuse regulation and other partnership anti-abuse rules
> Considerations in a challenge to proposed IRS guidance under the limited partner exception to SECA under Section 1402(a)(13) and the related-party basis-shifting rules
- Challenging a Tax Regulation Through Trial and Appeal to the Appellate Courts – Tax regulations seemed exempt from many of the strictures applied to other federal agencies – almost insulating them from taxpayer challenge — a phenomenon known as ‘tax exceptionalism’. Moreover, taxpayers were limited from bringing prior review of tax regulations based on the anti-injunction Code provision and Declaratory Judgment Act. The repeal of Chevron, the impact of which has been greatly expanded from a litigation perspective by Corner Post, will inspire aggrieved taxpayers to pursue claims of “unfairness” or exceeding agency grant of authority to the courtroom and appellate court panels. And these challenges have already begun. Taxpayers are also expected to assert more APA challenges which will be met with a vigorous government defense.
Using a hypothetical fact pattern, this segment explores how a tax regulation challenge today is expected to unfold in practical terms, both in taxpayer-specific proceedings (on audit, then judicial review) and in affirmative litigation challenging IRS rules.
> Background on ‘tax exceptionalism’ and its gradual demise, including Supreme Court’s decisions in Mayo, CIC, and Boechler
> Supreme Court’s recent watershed administrative-law rulings making regulations more vulnerable: Loper Bright, Corner Post, and others
> In the trenches, part I: How challenges to tax regulations may be pursued in litigation (Tax Court, district court)
> In the trenches, part II: How challenges to tax regulations may play out on appeal
This course will benefit the following attorneys:
- Intermediate and advanced tax planners and tax litigators
- Corporate lawyers with sophisticated partnership tax planning expertise
- Administrative law attorneys and trial lawyers
- This course may also benefit sophisticated estate tax litigators and those representing family businesses