The U.S. Supreme Court is hearing arguments in a case that could have far-reaching tax law implications for certain individuals. At issue in Moore v. U.S., is whether the Mandatory Repatriation Act (MRA), which was enacted as part of the Tax Cuts and Jobs Act and is intended to tax foreign profits of some U.S. corporations, violates the 16th Amendment. The plaintiffs claim their distributions taxed under the MRA were, in fact, unrealized. Even though the corporation realized income, the plaintiffs didn’t receive a distribution. When the 9th Circuit Court heard the case earlier, it ruled that courts have consistently held that taxes similar to those in the MRA are constitutional. Stay tuned.
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