Overview
Law360 quoted David Fruchtman in a September 23 article titled "Three Cases State Tax Pros Should Watch This Supreme Court Term." The article looks at three cases for state tax mavens to watch in the US Supreme Court this fall.
The justices are scheduled to hear oral arguments December 1 in a case of a microcaptive insurer's challenge to agency reporting requirements, rebuffing the IRS' plea that they should let stand a Sixth Circuit ruling against CIC Services. In that ruling, the Sixth Circuit found the challenge to be barred by the Anti-Injunction Act (AIA), a sister law to the Tax Injunction Act, which applies to state remedies. The company's position is that the AIA bars only suits challenging tax assessments and collections, not the reporting requirements that are at issue here. To make its claim, the company has frequently invoked a US Supreme Court decision on state tax, DMA v. Brohl.
Fruchtman, who leads the firm's national state and local tax practice, says, "The taxpayers cite that throughout their briefing, and they are clearly looking for the court to reference what it did in the DMA vs. Brohl case to help them address the Anti-Injunction Act case."
The full article can be read at Law360 (subscription required).