Don Korb Discusses U.S. Supreme Court Ruling Regarding IRS Regulations in Daily Tax Report

February 14, 2011

Mr. Korb was quoted in an article about the U.S. Supreme Court’s recent ruling in Mayo Foundation for Medical Education and Research v. United States, 79 U.S.L.W. 4015 in the February 14 issue of Daily Tax Report. The decision found that all Internal Revenue Service regulations should be granted a high level of judicial deference, a ruling Daily Tax Report noted is “broadly seen as shrinking the grounds for lawsuits and conferring more regulatory authority on IRS.” Mr. Korb told the publication, “Going forward, taxpayers and their advisers are going to have to become experts at administrative law that exists in other areas.” He also pointed to wording in Mayo that afforded deference to a final rule that had been preceded by a period of notice and comment, but that did not address whether temporary rules or other forms of guidance should be given the same deference. He also wondered whether the IRS would use the decision to issue retroactive regulations. “In my view, they’d better be careful how they use it. Will they try to change a regulation retroactively?” Mr. Korb said. “If they do it retroactively, that’s where they’re going to run into a problem. They have to be careful and think through the ramifications of such an action.”