Rehearing Denied in SIH Partners
July 3, 2019
The Third Circuit today denied a petition for rehearing en banc in SIH Partners. See our prior reports here. The taxpayer now has 90 days to file a petition for certiorari.
The petition for rehearing focused more on general administrative law principles than on the substantive section 956(d) issue in the case. In particular, the petition criticized the panel for applying Chevron deference to a regulation that did little more than parrot the statutory language. It also argued that the panel erred in stating that the IRS was not bound by a previously published Revenue Ruling. Given the Supreme Court’s recent interest in regulatory deference issues (and the lack of any reason to believe that it has any particular interest in the taxation of controlled foreign corporations), one can expect that a cert petition, if one is filed, would have a similar focus. The Court, however, will have many other opportunities to explore Chevron deference further if it so desires, so it is hard to say that the outlook for Supreme Court review in this case is very promising.
SIH Partners – Taxpayer Petition for Rehearing
