July 2024 Policy Pulse

Between the release of long-awaited Supreme Court decisions, to a slew of new Treasury regulations, startling Employee Retention Credit findings and election politics, it’s been a busy few weeks for tax policy! Below we cover the highlights from the past month.

Supreme Court decisions

The Supreme Court wrapped up its term last week after issuing several decisions that could have significant, long-term tax policy implications:

• Moore v. United States – the Court ruled in favor of the constitutionality of the Tax Cuts and Jobs Act’s (TCJA’s) Mandatory Repatriation Tax. The decision was narrow and failed to address whether realization of income is required before it can be taxed. Learn more in our brief synopsis or by watching a more robust discussion of the issues in a playback of our June 27 webinar.
• Loper Bright Enterprises v. Raimondo and Relentless v. Chamber of Commerce – these linked disputes led the Court to overturn Chevron v. Natural Resources, dealing a blow to federal agency powers. The decision could have long-lasting implications for tax policy, including an increase in challenges to Treasury and IRS guidance. Read our FAQs for an overview and watch our video for additional discussion and insights.
• Corner Post Inc. v. Board of Governors of the Federal Reserve System – the Court held that, under the Administrative Procedure Act, the statute of limitations for a facial challenge to a federal agency rule (broadly, a challenge to the rule’s constitutionality) doesn’t begin until the plaintiff is injured by the final agency action (e.g. – the date a rule is published). Prior to the ruling, most previous circuit courts held the statute began on the date of the final agency action, rather than the date the plaintiff was injured. This ruling may also provide taxpayers with opportunities to challenge old tax regulations.