Brief Filed in Lawsuit Challenging IRS Transition Tax Regulations

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The Bassin Law Firm PLLC filed a major substantive brief last week in Silver v. IRS, an interesting lawsuit pending in federal district court in Washington, DC (Case No. 19-247).  

The case, filed on behalf of a U.S. citizen who owns a small business abroad, challenges the validity of the regulations promulgated by the IRS to interpret and implement the newly enacted transition tax imposed upon U.S. shareholders of controlled foreign corporations.  Mr. Silver contends that IRS and Treasury did not comply with the required procedures designed to protect small business when they promulgated the challenged regulations.  Specifically, he contends that they violated provisions of the Administrative Procedure Act, Regulatory Flexibility Act, and Paperwork Reduction Act and that the regulations should be set aside, declared unlawful, and sent back to the agencies pending compliance with these statutes.

The Government has moved to dismiss, contending that the taxpayers lack standing to litigate these claims and that the Anti-Injunction Act bars district courts from hearing the taxpayers' claims.   The brief filed by the firm on behalf of Mr. Silver refutes both contentions and asks the court to proceed to a ruling on the merits of the case.

A copy of the brief can be found <a href="/files/2019/07/brief-as-filed.pdf" target="blank_">here</a>.