Challenging the IRS … and Winning for Treasury & Risk
The Risk & Treasury article “Challenging the IRS … and Winning” by Sean King discusses the case of CIC Services, which took on the IRS and won in a landmark Supreme Court decision. CIC Services challenged the validity of IRS Notice 2016-66, which required certain taxpayers to disclose information about captive insurance transactions, and the failure to disclose could lead to unappealable fines of up to $50,000. The court ruled in favor of CIC Services, finding that the notice had not been properly issued under the Administrative Procedure Act. The decision had far-reaching implications, as it established a precedent for challenging the validity of other IRS regulations. The article discusses the impact of the decision on recent court cases and its positive impact on taxpayers.
Future Implications of The CIC Services v. Internal Revenue Service case
- The IRS must comply with the requirements of the APA.
- Taxpayers can now successfully challenge such illegal regulations.
- The decision sparked discussions on how much power the IRS should have.