Galvanizing International Tax Case Accepted by Supreme Court (2)

The US Supreme Court agreed Monday to hear a tax case over foreign earnings that has sparked concerns from several outside groups about the limits to Congress’ taxing powers.

The tax under internal revenue code Section 965 was designed to ensure that foreign earnings didn’t permanently escape US taxation as the country transitioned to a new international tax regime. It treated foreign corporate earnings of US shareholders from 1987 to 2017 as if they had been repatriated back to the US.

Charles and Kathleen Moore are seeking a $14,729 refund through their challenge to the tax, but the stakes could ...