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Taxpayers Can Strike First: Supreme Court Allows Pre-Enforcement Challenges to Certain IRS Regulatory Actions | Alston & Bird


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Our Federal Tax Group examines a U.S. Supreme Court ruling that could give taxpayers greater leeway to challenge IRS regulatory schemes before the IRS takes enforcement action.
CIC Services v. IRS narrows the reach of the Anti-Injunction Act
Three features of Notice 2016-66 helped the Court overturn lower courts’ rulings in favor of the IRS
The IRS’s rule-making process now open to more Administrative Procedure Act challenges
Taxpayers and those subject to IRS enforcement are often stymied in their efforts to prospectively challenge IRS regulatory actions. The Anti-Injunction Act (AIA), originally enacted in 1867, generally restricts any suit “for the purpose of restraining the assessment or collection of any tax.” Case law has historically applied this broad prohibition to effectively restrict legal challenges to a federal tax unless the taxpayer pays the tax and sues the government for a ref ....

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Check Your Timing: Tax Traps for the Unwary in Acquisition Agreements | Alston & Bird


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Even one day of unanticipated tax liabilities can have meaningful consequences. Our Federal Tax Group turns your attention to the little-regarded – but still important – straddle-period provisions in acquisition agreements.
The “interim closing of the books” vs. “proration” approaches
Avoiding a one-day disparity between straddle-period accruals for taxes and everything else
Special rules for S corporation terminations
Certain tax covenants in M&A agreements sometimes get less attention than they should. And the coordination among tax and other financial accounting methodologies in key economic provisions in M&A agreements can often be overlooked. Preparation of tax returns, payment of taxes, control and participation in tax controversies, tax treatment, and purchase price allocation often (and understandably) garner the most attention. Straddle period tax allocations typically receive som ....

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