In December the Supreme Court heard the case of Moore v. U.S., and we commented on same in a post. Yesterday, in an opinion not surprising to us at Carter Ledyard, the Court upheld the transition tax at issue in a 7-2 ruling. Readers may recall that the case involved a couple protesting a tax enacted under the Tax Cuts and Jobs Act which is a mandatory repatriation. What this means is that certain shareholders were automatically deemed to receive funds from their entities though they had not taken out cash and were taxed on these funds. In their ruling, the Court held that this tax measure fell within the 16th amendment squarely.
Read more about our insight on the initial hearing here and here.