Chevron Doctrine’s Demise Would Mean Big Changes for Tax Law

Conservative lawmakers and jurists have taken aim at the Chevron doctrine for years. At its most abstract, Chevron gives federal agencies the ability to interpret ambiguous laws, and affords those interpretations a fair amount of deference. But the doctrine’s continuity is at stake in Loper Bright Enterprises v. Raimondo, which the US Supreme Court has taken up this term.

Overturning or gutting Chevron would have profound consequences for tax regulation and practice. Without the deferential standard, courts would no longer be bound to uphold IRS regulations as authoritative interpretations of ambiguous statutes.

The reinterpretation and ...