Episode Details

In 2017, Congress made several permanent changes to the taxation of foreign earnings with the enactment of the Tax Cuts and Jobs Act (TCJA), P.L. 115-97 . The TCJA imposed a deemed repatriation (Sec. 965). In the Moore v. United States case, the constitutionality of this policy is being challenged.

Listen to Tony Nitti, CPA, Tax Partner — EY, and Damien Martin, CPA, Tax Partner — EY, discuss the pending case live from the 2023 AICPA & CIMA National Tax & Sophisticated Tax Conference, as well as the top tax cases of all time.

What you'll learn in this episode

• Background on the case and case law history involving U.S. taxation (0:44)
• Deeper dive into the history of U.S. tax law (11:41)
• Hylton v. United States, 3 U.S. (3 Dall.) 171 (1796) (20:38)
• Temporary income tax enactment (23:47)
• Pollock v. Farmers' Loan & Trust Company, 157 U.S. 429 (1895) (26:06)
• 16th Amendment (28:36)
• Commissioner v. Glenshaw Glass Co., 348 U.S. 426 (1955) (34:13)
• Lead up to the Moore case (35:20)
• Advice for how to explain the Moore case to clients (41:24)

IRS resources

• Section 965 Transition Tax — IRS webpage detailing Sec. 965, including an overview, what taxpayers are impacted and what potentially impacted taxpayers need to know.

Other resources

• Charles G. Moore, et ux., Petitioners v. United States — Case whether the 16th amendment authorizes Congress to tax unrealized sums without apportionment among the states.

Transcript

April Walker: Hello everyone and welcome to the AICPA's Tax Section, Odyssey podcast, where we offer thought leadership on all things tax facing the profession. I'm April Walker, a Lead Manager from the Tax Section. I'm here today in person at the National Tax Conference with Tony Nitty and Damien Martin, both partners at EY.

They have a session here that's titled, "The Top Tax Cases of All Time." If that's not a high bar to set, I'll be surprised, but I thought it might be fun to go over some of the highlights of that session on this podcast episode today.

Damien and Tony, I'm going to be here if you need me, but otherwise, I'm going to let you guys talk about the top tax cases of all time. Take it away.

Damien Martin: All right Tony, I don't know how we get better than that saying — the top tax cases of all time. But, I'll let you set the stage here because we're not just going to geek out like we usually do. We're going to do that.

Tony Nitti: Somebody likes his buddy. I don't know how high up our gratitude needs to go. I don't know if it's April or the AICPA planning committee. I don't know if it's the Supreme Court in the United States. I don't