The IRS’s most controversial regulations are more vulnerable to litigation after the US Supreme Court overturned a legal doctrine empowering federal regulators, as companies and individuals seek a fair shake from the agency.
The ruling is expected to prompt a stream of litigation in areas—ranging from syndicated conservation easements to health insurance subsidies—where the IRS and Treasury Department stretched their regulatory authority and already are facing court challenges.
Other contentious issues such as President Joe Biden’s tax-and-climate law or the agency’s own electronic filing system also could be exposed to new litigation, attorneys said.
“Companies don’t like to take a ...