{"id":13465,"date":"2024-07-02T21:27:28","date_gmt":"2024-07-02T21:27:28","guid":{"rendered":"https:\/\/taxops.com\/?p=13465"},"modified":"2024-07-03T15:13:29","modified_gmt":"2024-07-03T15:13:29","slug":"overturning-chevron-what-it-means-to-taxpayers-at-the-federal-and-state-levels","status":"publish","type":"post","link":"https:\/\/taxops.com\/overturning-chevron-what-it-means-to-taxpayers-at-the-federal-and-state-levels\/","title":{"rendered":"Overturning Chevron: What it means to taxpayers at the federal and state levels"},"content":{"rendered":"\n<div style=\"height:45px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"536\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"https:\/\/taxops.com\/wp-content\/uploads\/2024\/07\/Overturning-Chevron-what-it-means-to-taxpayers-1-1024x536.png\" alt=\"\" class=\"wp-image-13471 lazyload\" data-srcset=\"https:\/\/taxops.com\/wp-content\/uploads\/2024\/07\/Overturning-Chevron-what-it-means-to-taxpayers-1-1024x536.png 1024w, https:\/\/taxops.com\/wp-content\/uploads\/2024\/07\/Overturning-Chevron-what-it-means-to-taxpayers-1-980x513.png 980w, https:\/\/taxops.com\/wp-content\/uploads\/2024\/07\/Overturning-Chevron-what-it-means-to-taxpayers-1-480x251.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1024px, 100vw\" \/><noscript><img decoding=\"async\" width=\"1024\" height=\"536\" src=\"https:\/\/taxops.com\/wp-content\/uploads\/2024\/07\/Overturning-Chevron-what-it-means-to-taxpayers-1-1024x536.png\" alt=\"\" class=\"wp-image-13471 lazyload\" srcset=\"https:\/\/taxops.com\/wp-content\/uploads\/2024\/07\/Overturning-Chevron-what-it-means-to-taxpayers-1-1024x536.png 1024w, https:\/\/taxops.com\/wp-content\/uploads\/2024\/07\/Overturning-Chevron-what-it-means-to-taxpayers-1-980x513.png 980w, https:\/\/taxops.com\/wp-content\/uploads\/2024\/07\/Overturning-Chevron-what-it-means-to-taxpayers-1-480x251.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1024px, 100vw\" \/><\/noscript><\/figure>\n\n\n\n<div style=\"height:46px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><em>The U.S. Supreme Court ruling that overturned the Chevron doctrine has wide implications on both federal, and potentially state, court rulings going forward. Here&#8217;s what to watch for.  <\/em><\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">By <a href=\"https:\/\/taxops.com\/judith-vorndran\/\">Judy Vorndran<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The United States Supreme Court on June 28 released its <a href=\"https:\/\/www.supremecourt.gov\/opinions\/23pdf\/22-451_7m58.pdf\">opinion<\/a> in <em>Loper Bright Enterprises v. Raimondo and Relentless, Inc. v. Department of Commerce<\/em>, overturning the&nbsp;<em>Chevron<\/em> doctrine, which generally saw federal courts deferring to federal agency interpretations when statutory questions arose. With <em>Chevron<\/em> now overturned, the implications on state and local tax decisions could be great, and potentially in taxpayers\u2019 favor.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The <em>Chevron <\/em>doctrine stems from 1984 decision in <em>Chevron v. Natural Resources Defense Council<\/em> (467 U.S. 837 (1984), that effectively allocated administrative authority between agencies and the courts, requiring federal courts to give deference to agencies\u2019 reasonable interpretation of ambiguous statutes. As a result, when taxpayers and others have challenged even state and local tax law, the courts have largely sided with the agency interpretation, effectively muting taxpayer outcry over agency overreach or other legal positions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Now, however, the <em>Loper<\/em> rule throws agency deference out the window when it comes to statutory interpretation at the federal level. Courts will need to determine the validity of the law itself on its own merits apart from agency interpretation. This could, in fact, limit agency actions that the courts determine are outside the bounds of statutory law and may result in an increase in taxpayer challenges where statutory language is murky.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Impact at the State Level<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">While the case dealt with federal agencies, there may also be a slippery slope affecting state departments of revenue deference as well. Taxpayers should not rely on what an auditor says is the \u201claw\u201d unless it is clearly enumerated in law, and not an agency \u201cinterpretation\u201d of the law.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Historically, likely due to the <em>Chevron<\/em> doctrine, departments of revenue have been given wide latitude to interpret tax laws (as has the IRS). The <em>Loper<\/em> decision may put into play as well any deference state courts have previously given state and local departments of revenue. It is worth watching closely how future tax cases fare in both federal and state courts in light of the <em>Loper <\/em>ruling.<\/p>\n\n\n\n<div style=\"height:46px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Read More<\/strong><\/h3>\n\n\n<ul class=\"wp-block-latest-posts__list wp-block-latest-posts\"><li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/auditor-independence-in-the-age-of-private-equity\/\">Auditor Independence in the Age of Private Equity: What CFOs Need to Know<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/r-d-credits-for-software-companies\/\">R&amp;D Credits for Software Companies: Scrum Teams, Qualifiers, and Section 174 After OBBBA<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/section-174-decoupling-what-tax-pros-need-to-know-state-by-state\/\">Section 174 Decoupling: What Tax Pros Need To Know State By State<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/sean-espy-new-partner\/\">TaxOps Welcomes Sean Espy as Partner, Tax Minimization<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/state-nexus-demystified-navigating-tax-compliance-after-wayfair-episode-1-2\/\">Your Tax Footprint Is Probably Bigger Than You Think: What Finance Leaders Need to Know About State Nexus<\/a><\/li>\n<\/ul>\n\n\n<div style=\"height:46px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\">Let&#8217;s Talk Tax<\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:46px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"block-2666d1fd-3ba5-44f9-9633-31908556df8a\">More Tax News<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/taxops.com\/us-state-and-local-tax-for-foreign-companies\/\">U.S. State and Local Tax for Foreign Companies<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/taxops.com\/texas-supreme-court-opinion-clarifies-service-receipt-apportionment\/\">Texas High Court Clarifies Service Receipt Apportionment<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/taxops.com\/california-issues-guidance-on-sourcing-service-receipts\/\">California Issues Guidance on Sourcing Service Receipts<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/taxops.com\/ethics-in-business-awards-sponsor\/\">Ethics in Business Awards Sponsor<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/taxops.com\/how-tos-for-partnerships-and-s-corporations-in-colorado-2\/\">State Legislatures Move on Tax Reform and Relief<\/a><\/li>\n<\/ul>\n\n\n\n<div style=\"height:53px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/taxops.com\/contact\/#subscribe\" target=\"_blank\" rel=\"noreferrer noopener\">Subscribe to Tax News<\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:35px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. Supreme Court ruling that overturned the Chevron doctrine has wide implications on both federal, and potentially state, court rulings going forward. Here&#8217;s what to watch for. By Judy Vorndran The United States Supreme Court on June 28 released its opinion in Loper Bright Enterprises v. Raimondo and Relentless, Inc. v. Department of Commerce, [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":13471,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","spt_transcript":"","footnotes":""},"categories":[229,226],"tags":[124,694,990,988,32,989,410,113,33,27,474,987,1069,1067,1008,19,30,986,38,972,973,1068,1065],"class_list":["post-13465","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-state-and-local","category-tax-news","tag-announcement","tag-asc-740-2","tag-biz-tax","tag-business-goals","tag-business-tax","tag-business-taxpayers","tag-businesstax","tag-corporate","tag-corporate-tax","tag-federal-tax","tag-flow-through","tag-project-management","tag-researchcredit","tag-researchtax","tag-retail-delivery-fee","tag-sales-tax","tag-state-and-local-tax","tag-tax-assist","tag-tax-compliance","tag-tax-opportunities","tag-tax-technology","tag-taxopportunities","tag-taxprofessionals"],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/taxops.com\/wp-content\/uploads\/2024\/07\/Overturning-Chevron-what-it-means-to-taxpayers-1.png","_links":{"self":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/13465","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/comments?post=13465"}],"version-history":[{"count":6,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/13465\/revisions"}],"predecessor-version":[{"id":13477,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/13465\/revisions\/13477"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/media\/13471"}],"wp:attachment":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/media?parent=13465"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/categories?post=13465"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/tags?post=13465"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}