United States: Will the Supreme Court finally deflate the IRS's overblown AIA argument?

In brief

Brendan Sponheimer, an associate in our North America Tax Dispute Resolution Practice, recently analyzed CIC Services, LLC v. Internal Revenue Service, which is scheduled for argument before the Supreme Court of the United States this fall.


Contents

At issue in the case is whether the Anti-Injunction Act's (AIA) bar on lawsuits for the purpose of restraining the assessment and collection of taxes precludes a pre-enforcement challenge under the Administrative Procedure Act (APA) to an Internal Revenue Service notice identifying certain "micro-captive transactions" as "transactions of interest." The decision in this case will have a significant impact on all pre-enforcement suits challenging the validity of tax rules — including those promulgated following the Tax Cuts and Jobs Act — under the APA. As Sponheimer illustrates, the Court has an opportunity to harmonize prior case law and provide wanting clarity on the interplay between the AIA and APA.

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