Texas Tech University

Unanimous High Court Rules Against IRS in Tax Reporting Dispute

Brad Kutner

May 17, 2021

COURTHOUSE NEWS SERVICES - The Supreme Court ruled 9-0 that a federal law doesn’t prohibit challenges of IRS insurance reporting requirements.

...Bryan T. Camp, a professor at the Texas Tech University School of Law who authored an amicus brief in support of the IRS, said Kagan's “floodgates” assessment might be a bit overstated. He suggested there could be a flurry of new cases aiming to use Monday's ruling to skirt tax laws.  

“At the very least we will now need to see lots of litigation (the flood) to see how broad this new exception really is or is not,” he said in an email, stressing taxpayers will want to know “how far they can go” and the only way to find that out is by filing suit. (Parentheses in original.)

He added, “We should reasonably expect to see a wave of pre-enforcement challenges, each of which will be claiming to be attacking a ‘regulatory mandate' the restraint of which will not restrain the assessment or collection of tax.”

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