Transition Tax Constitutional Challenge Denied an Appeal Rehearing

A majority of the Ninth Circuit declined to rehear a couple’s constitutional challenge to a tax on pre-2018 foreign earnings, overruling three dissenting judges.

The Tuesday order came after a three-judge panel of the US Court of Appeals for the Ninth Circuit ruled in June that the tax didn’t exceed Congress’s taxing authority, affirming a lower court’s decision. In their petition requesting a rehearing, Charles and Kathleen Moore said the panel’s ruling had shattered a judicial consensus on the limits to Congress’s taxing powers.

According to the order, the panel declined to rehear the case and the ...