Paul L. Caron
Dean




Wednesday, August 19, 2015

Divided D.C. Circuit Says Anti-Injunction Act Bars Challenge To IRS's Bank Reporting Regulation

In Florida Bankers Association v. Department of the Treasury, No. 14-5036 (D.C. Cir. Aug. 15, 2015), a sharply divided D.C. Circuit held that the Anti-Injunction Act (26 U.S.C. § 7421(a)) barred a challenge by two bank associations to tax regulations requiring U.S. banks to report to the IRS interest earned by non-resident aliens (even though such interest is not subject to U.S. tax). In a blistering dissent, Judge Henderson argues that the majority's decision is directly contrary to the Supreme COurt's recent decision in Direct Mktg. Ass’n v. Brohl, 135 S. Ct. 1124 (2015), and two prior D.C. Circuit decisions. For a detailed discussion of the opinion see Patrick J. Smith (Ivins, Phillips & Barker, Washington, D.C.), D.C. Circuit Majority Opinion in Florida Bankers Not Consistent with Supreme Court’s Direct Marketing Decision (Part 1, Part 2).  (Hat Tip: Kristin Hickman.)

https://taxprof.typepad.com/taxprof_blog/2015/08/divided-dc-circuit-says-anti-injunction-act-bars-challenge-to-irss-bank-reporting-regulation.html

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