Overview
The article discusses the array of steps that the Treasury Department can take in what will likely be a years-long legal battle over what it sees as a multi-billion dollar loophole in the 2017 tax overhaul, after a federal district court judge in Colorado held earlier this month that temporary Treasury rules blocking foreign-sourced corporate income from qualifying for a tax deduction were invalid.
Steptoe's Eric Solomon and Caitlin Tharp were quoted on the implications of the case and the federal government’s options going forward. "This is just one case, one taxpayer, one court, so this has a long, long way to go," said Solomon.
Caitlin Tharp was quoted on the questions left unresolved by the ruling. The issue of whether Treasury had the authority to issue the regulatory fix "seemed more obvious" than the notice-and-comment question the court answered, Tharp said. "The statute says one thing and then the temp regs say something that’s contrary to the text, so how are you going to meet that Chevron standard of ambiguity?" she asked.
The full article can be read at Bloomberg Tax.
