The US Supreme Court’s decision in the Corner Post case will hit tax regulations particularly hard after the court appeared to dramatically expand the statute of limitations on increasingly popular procedural challenges to agency regulations.
Before the decision, taxpayers had six years from the time a rule was issued to challenge it for violating the Administrative Procedure Act. IRS regulations especially benefited from the limitation, because affected taxpayers couldn’t challenge them in the courts until they received an IRS claim that they could appeal, said Kristin Hickman, a University of Minnesota law professor who specializes in tax and administrative issues. ...