US Chamber Urges Supreme Court to Reverse Foreign Tax Ruling

The US Supreme Court should clarify that Congress only possesses the power to tax income that is realized, the US Chamber of Commerce said in an amicus brief Wednesday.

The court agreed in June to hear the case of a married couple, Charles and Kathleen Moore, who argue the government doesn’t have the authority to tax them as shareholders of an Indian farming equipment company because the company hadn’t given them earnings.

The “mandatory repatriation tax” at issue, under internal revenue code Section 965, was created by the 2017 Tax Cuts and Jobs Act to stop foreign earnings from ...