Close
Close

U.S. Chamber of Commerce challenges inversion regulations

RFP
Tax Hot Topics: Inversion regulation challengeIn a complaint filed on Aug. 4 in the Western District of Texas, the U.S. Chamber of Commerce and the Texas Association of Business filed suit against the IRS and Treasury over the inversion regulations. The suit alleges that Treasury has purported to “rewrite the Internal Revenue Code” and in doing so violated the Administrative Procedure Act.

The regulations in question were issued on April 4 and were part of the IRS and Treasury’s ongoing efforts to limit inversion transactions and address earnings stripping. The regulations address transactions that are structured to avoid the purposes of Sections 7874 and 367.

The suit is the first in what may be a series of challenges faced by Treasury and IRS as part of their effort to combat inversion and earnings stripping transactions.

Tax professional standards statement
This content supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.

The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.