Tax Pros Fear High Court Will Go Too Far in Transition-Tax Case

Tax practitioners are getting increasingly anxious about a major foreign income tax case before the Supreme Court that they fear could tear down wide swaths of the tax code, as a deadline approaches for parties to weigh in.

The deadline to submit some of the friend-of-the-court briefs in the case, Moore v. US, are due as soon as Wednesday.

The case, which the court will hear this fall, challenges only the “transition tax” on foreign earnings brought back to the US. But practitioners fear that if the Supreme Court views the matter broadly, a ruling for the plaintiffs could ...