Supreme Court decision addresses deference accorded tax regulations

Washington National Tax Services
The U.S. Supreme Court, while construing final Treasury regulations relating to the payment of FICA tax by medical residents, recently concluded that the proper standard of deference when reviewing Treasury regulations is the highly deferential Chevron standard, rather than the less deferential National Muffler standard. (Mayo Foundation for Medical Education and Research v. United States) The degree of deference accorded to agency regulations has been the subject of significant litigation for more than 50 years.


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