Supreme Court Seen as Opening Door to More Tax Guidance Lawsuits

A wide array of tax guidance is potentially vulnerable to legal challenges after the U.S. Supreme Court held that a Tennessee consulting firm can sue over an IRS reporting requirement without violating it first.

Unlike other federal regulators, the Treasury Department and Internal Revenue Service are protected by the Anti-Injunction Act from quick legal challenges to many of their tax regulations. The act generally bars lawsuits aimed at restraining tax assessment or collection, which in practice means lawsuits have to wait until taxpayers have gotten an IRS bill or are seeking a refund.

The May 17 unanimous ruling placed a ...