Treasury Argues Transition Tax Lawsuit Should Be Dismissed

A federal district court should dismiss a challenge to regulations related to a new tax for certain U.S. shareholders of foreign companies because the rules were properly issued, the federal government argued in a court filing.

The argument came in a memorandum Monday in support of a motion filed by Treasury and the IRS at the the U.S. District Court for the District of Columbia. The government said the court should grant it summary judgment if the case isn’t dismissed.

The government is defending itself against allegations that it didn’t follow proper procedures when it issued regulations implementing tax ...