Supreme Court Ruling Is Very Bad News for IRS

Supreme Court Ruling Is Very Bad News For IRS

( – No one who has been paying attention the last few years doubts the bias exhibited by the IRS. It targeted conservative groups during the Obama administration and has spent years auditing former President Donald Trump.

On May 17, the US Supreme Court issued a ruling in a case that will impact the Internal Revenue Service (IRS) in a big way. The case wasn’t glamorous enough to make most headlines, but it did earn the IRS a unanimous rebuke from the nation’s highest court when it voted 9 to 0 to reverse and remand the case.

That case, CIC Services, LLC v. Internal Revenue Service, involved a new IRS reporting requirement regarding certain transactions involving insurance. The IRS decided, on its own, to begin enforcing the requirement under Notice 2016-66.

However, there was just one problem. All federal agencies must provide proper notice of any proposed new requirements and put procedures in place for taking comments from the public for review. With all its self-imagined power and glory, the IRS decided to skip those legal requirements — setting the stage for its humiliating loss in court.

Finally, the Supreme Court is reining in an IRS that often appears to be punitive and wrought with unchecked power.

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