IN-DEPTH: What You Need to Know About the Historic Tax Case Before the Supreme Court

Contact Your Elected Officials
The Epoch Times Header

The U.S. Supreme Court recently agreed to hear a challenge to the constitutionality of a provision of the Trump-era Tax Cuts and Jobs Act (TCJA) in a case that experts say has major implications for America’s tax system.

At the end of June, the Supreme Court added a new case to its docket for the 2023โ€“24 term that involves weighing whether a provision in the TCJA called the “mandatory repatriation tax” violates the 16th Amendment of the U.S. Constitution.

Some experts argue that if the Supreme Court rules that the provision is unconstitutional, this could have major consequences, including upending key parts the current U.S. tax system.

The case is called Moore v. United States, and here’s what you need to know about this potentially groundbreaking case, in which the Supreme Court recently gave both sides the green light to file briefs on the merits.

Mandatory Repatriation Tax Origin

When President Donald Trump signed the TCJA into law in 2017, the Act included a provision that introduced the mandatory repatriation tax as a way to obtain tax revenue from large earnings that corporations held abroad.

The tax wasย later codifiedย into a revised Internal Revenue Code section 965, which requires some U.S. shareholders to pay a one-time tax on the offshore untaxed earnings and profits of certain foreign corporations as if those earnings had been repatriated to the United States.

Taxpayers affected by the mandatory repatriation tax, which is also known as the “transition tax,” are those who own 10 percent or more shares of a controlled foreign corporation (CFC) or a foreign corporation that has a U.S. shareholder that is a domestic corporation.

U.S. shareholders can include individuals, S corporations, partnerships, trusts, REITS, domestic corporations, cooperatives, estates, RICs, and tax-exempt organizations.

The transition tax also classifies a certain portion of a U.S. shareholder-controlled foreign corporation’s deferred foreign income as part of that corporation’s taxable income. This means that qualifying U.S. shareholders are required to pay the transition tax on their share of the foreign corporation’s retained earnings even if they didn’t actually receive any of that money, such as through dividends.

Byย Tom Ozimek

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

Armistice and amnesiaโ€ฏย 

In case you missed it too, June 25thโ€ฏmarked the 75th anniversary of the beginning of the Korean War โ€“ the first hot front of the Cold War.โ€ฏ

Candace Owens Gets Sued by Macrons

Candace Owens began a deep dive into the lives of French President Emmanuel Macron, his wife Brigitte, and the story of how they came to be together.

Fluoride โ€˜Tabletsโ€™ For Babies EXPLODE in Popularity Amid Water Fluoridation Rollbacks

Reportedly, NPCs are so distraught that their toddlers wonโ€™t be fed a neurotoxin through the public water supply that theyโ€™ve resorted to fluoride pills.

ChatGPT Goes Biblical about End Times!

There are some truly outstanding internet content creators, or...

Bangkok Indians: โ€˜You Are Lucky Manโ€™

In Bangkok, friendly prostitutes outside โ€œmassageโ€ shops tell me Iโ€™m โ€œso handsome man.โ€ Indian men prowling those streets tell me Iโ€™m โ€œlucky man.โ€

5 Things to Know About Trump Adminโ€™s Settlement With Columbia University

Under agreement between President Trump and Columbia regarding anti-Semitism, school will pay a $200 million fine to regain federal money.

Trumps America: Welpโ€ฆ that backfired.

The official @TheDemocrats account posted chart with the caption โ€œTrumpโ€™s Americaโ€ โ€” but didnโ€™t seem to notice how their own graph actually works.

Education Department to Release Billions in Withheld Grant Money for Schools

Dept. of Education said OMB completed a review of 2025 public education allocations โ€œand will begin dispersing funds to the states next week.โ€

Judge Maintains Nationwide Block on Trumpโ€™s Birthright Citizenship Order

A federal judge in Massachusetts has maintained his nationwide block on President Donald Trumpโ€™s policy restricting birthright citizenship.

Ex-DOJ Officials File Lawsuit Against Bondi Over Terminations

Former DOJ officials filed lawsuit against AG Bondi and the fed. govt, saying they were terminated for work on cases related to Jan. 6 Capitol breach.

Odds of U.S.-EU Trade Deal Are 50โ€“50 Ahead of Tariff Deadline: Trump

President Donald Trump said thereโ€™s a 50โ€“50 chance that the United States will finalize a trade deal with the European Union before an Aug. 1 deadline.

Trump Pulls Habbaโ€™s Nomination for New Jerseyโ€™s Top Prosecutor, Making Her Acting US Attorney

President Trump withdrew his nomination of Alina Habba to serve as NJโ€™s top federal prosecutor, making her Acting US Attorney.

Trump Says He Wants Muskโ€™s Companies to โ€˜Thrive Like Never Beforeโ€™

On Thursday, President Trump said, โ€œI want Elon, and all businesses within our Country, to THRIVE, in fact, THRIVE like never before!โ€
spot_img

Related Articles