• Monte Silver, Tax lawyer

5 Federal Tax Cases To Watch In The 2nd Half Of 2020

5 Federal Tax Cases To Watch In The 2nd Half Of 2020

By Amy Lee Rosen · July 10, 2020, 8:21 PM EDT

In the remainder of the year, federal courts will examine several administrative law challenges to tax regulations along with questions of whether preventing COVID-19 stimulus checks to citizens married to non-resident aliens is constitutional law …

Here, Law360 looks at five federal tax cases to watch in the second half of 2020.

1. CIC Services v. IRS

A case before the Supreme Court we have discussed as it is related to our case. See Bloomberg article. In fact, our case is cited in a brief submitted to the Supreme Court!!

2. Silver v. IRS Cases

In the D.C. federal court, an American tax lawyer living abroad is separately challenging two international tax regulations on provisions passed under the Tax Cuts and Jobs Act  because he contends the rules violate certain administrative procedure requirements.

Attorney Monte Silver, who is a member of the California bar but lives in Israel, argued that final regulations from 2019 on global intangible low-taxed income under Section 951A  violate the Administrative Procedure Act because the rules lack an analysis of their impact on small businesses as required by the Regulatory Flexibility Act. Treasury should have provided an initial and a final analysis on the impact the rules would have on small businesses, which are especially vulnerable to the burdens of complying with GILTI, Silver said in the complaint.

In a separate complaint, Silver is challenging final regulations on the so-called transition tax regulations under Section 965, arguing that they violate the Regulatory Flexibility Act and the Paperwork Reduction Act. The PRA requires agencies to certify and provide a record that they have considered steps to reduce compliance burdens resulting from new collection of information and record-keeping requirements.

Steven R. Dixon, a member at Miller & Chevalier Chtd., told Law360 the two cases are important to watch because other regulations already on the books have similarly detailed analyses under the Regulatory Flexibility Act and Paperwork Reduction Act. It is typical for Treasury to state that its regulations will not have a large impact on small businesses, without any extensive data analysis, which means that other tax regulations may be vulnerable to similar challenges if Silver succeeds, Dixon said.

"I wouldn't be shocked if we had a decision in 2020," Dixon told Law360.

Silver's Administrative Procedure Act challenge to the transition tax has already survived a government motion to dismiss for lack of standing under the AIA, and two amicus briefs have already been filed in support of Silver's motion for summary judgment. Thus the court has to now examine the substantive arguments about administrative procedure, Dixon said.

Even though many other Administrative Procedure Act challenges have failed, such as in the U.S. Supreme Court's refusal to consider Intel subsidiary Altera's challenge to transfer pricing regulations, the Silver lawsuits are just two of many ongoing cases challenging tax regulations under principles of administrative law, he said.

"This is another instance of the APA becoming more relevant to the day-to-day practice for tax lawyers," Dixon said.

The cases are Monte Silver et al. v. Internal Revenue Service et al., case 1:20-cv-01544, and Monte Silver and Monte Silver Ltd. v. the Internal Revenue Service et al., case number 1:19-cv-00247, in the U.S. District Court for the District of Columbia.

3. John Doe v. Donald J. Trump

An anonymous U.S. citizen is trying to convince an Illinois federal court that withholding COVID-19 stimulus checks from taxpaying Americans married to immigrants without Social Security numbers is unconstitutional.


Section 6428 of CARES grant $1,200 to each American who… However, any family filing a joint tax return in which one spouse has a Social Security number and the other has an individual taxpayer identification number cannot receive a check….

For full article, see https://www.law360.com/tax-authority/articles/1283608/5-federal-tax-cases-to-watch-in-the-2nd-half-of-2020

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