What Are The Potential Consequences Of The Supreme Court Transferring Regulatory Power From Agencies To Judges?

In June, the Supreme Court considered and overturned the Chevron vs. Natural Resources Defense Council decision which was decided in 1984. This overturning is significant as it could make it easier to bring the regulations set by an agency to the court.

Chevron vs. Natural Resources Defense Council was put into place to allow the court to defer to federal agencies and their specialized knowledge to interpret ambiguous law. They may do this under the assumption that their interpretation is reasonable. The implications of this decision will impact how federal agencies determine food safety laws, protect the environment, handle taxes, and more.

Your tax attorneys in Arizona have an in-depth understanding of Arizona tax law and keep up to date on how this new ruling will affect the IRS and tax law.

Herring Fishermen & The Overturn Of The Chevron deference

The decision was initiated by herring fishermen. In the fishing industry, inspectors often go out on the boats to gather information and ensure regulations are being followed. The herring fishermen did not oppose this. They agree that in order for them to be the most successful, the waters need to be healthy and fishing needs to be regulated.

They did disagree, however, with the new ruling that they would have to pay for the salaries of the inspectors who went on the boat with them.They argued that this was not a valid interpretation of law and they pushed for the supreme court to have the say on ambiguous laws from then on instead of government agencies.

Impact Of Overturning Chevron Deference On Tax Law and IRS

The Supreme Court’s recent decision to transfer the power to interpret ambiguous regulations from the agencies to judges has many implications in federal fields all over the United States, including the IRS.
While the tax attorneys in Arizona from Silver law have not noticed the effects of this ruling yet, it is likely they will come into play soon and will have several consequences. Because of this, they are keeping a close eye on how this new ruling will affect tax regulations.

The Judicial Court May Look Closer At IRS Interpretations

Before June, the courts would defer to the IRS when it came to tax laws that were not clear. The IRS was able to use its expertise to determine what the law meant and implement that interpretation, assuming it was a reasonable one. After the new ruling that overturned this deference, there will be more judicial scrutiny on IRS regulations and guidance.

Judges will be looking at the ambiguous laws and determining what they mean based only on legal principles instead of following the expertise of the IRS.

Because of this, taxpayers and businesses may begin to challenge rules the IRS puts in place that they do not like, bringing them to court for a judge to look at. Because each judge and court is different with differing opinions, this could lead to differing conclusions about the same tax issues.

The IRS May Find It Challenging To Implement Tax Policies

The IRS uses its expertise to implement effective tax policies. If there is a complex issue, the IRS was able to create regulations and guidance. With the new ruling, the IRS will be under more scrutiny as to its regulations which may cause long delays when it comes to implementing new regulations or adjusting them.

It is possible that this increased scrutiny and possible delays will make tax laws harder to follow and put more burden on taxpayers. Tax attorneys in Scottsdale will become even more essential as tax law may become more unclear and you will have the opportunity to dispute certain regulations.

Increased Burden On Treasury Department & IRS

With more eyes on the IRS’ interpretations of ambiguous laws, this could lead to more burden on the IRS and Treasury Departments as they face pushback. This pushback will mean more resources will need to be placed into working to defend interpretations in court.

Not only this, but these government agencies will have to put more energy into reconsidering and changing their regulations potentially frequently. This could impact efficiency and effectiveness.

How Tax Attorneys Can Help Navigate The Application Of Chevron Deference Changes

As tax law is challenged and changes, it is essential to have our tax attorneys from Silver Law on your side. The attorneys will help ensure you or your business understands and follows tax law. Not only that, but if you disagree with an interpretation of some of the more ambiguous tax laws, an attorney can help you build a strong case, especially in matters of tax litigation

Your attorneys will be imperative as you navigate how the change in Chevron deference will affect you.

The Attorneys at Silver Law Will Help You Navigate Tax Changes

At Silver Law, our Arizona tax attorneys are committed to helping our clients navigate the complexities of tax law. As tax law becomes more complicated we will be by your side ensuring compliance so you don’t have to face any penalties. We understand both sides of tax disputes and will work to ensure the best possible outcome for your case.

Contact us today and give yourself peace of mind as you navigate Arizona tax law.

Email: lchapman@silverlawplc.com
Website: taxcontroversy.com

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