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Overseas American business professional and US Tax expert Monte Silver has claimed a key legal win in a case against the US Government relating to a regulation known as the Transition Tax. Mr Silver launched a legal campaign against the Transition Tax in 2018, and until recently the case had been subject to a Motion to Dismiss by the US Government. However, at the end of 2019, a US Judge ruled against the Government motion, allowing the case to continue.
Explaining the case to The American, Mr Silver said "We overcame the hardest part of the case. We now have to ask the court for a judgment without trial and we win the case. As part of the remedy we seek, we will ask the judge to send the regulations back to Treasury and ask them to follow these laws. This includes requiring them to (i) come up with possible exemptions from the Transition tax for small businesses, (ii) write the regs in simple language that we can understand, and (iii) much more”.
In terms of overseas Americans, one of the important aspects of this case is the precedent it sets for other challenges. Mr Silver went on to explain that "We will be filing a similar lawsuit related to GILTI in the near future, seeking exemptions from the tax for small businesses. As many know, GILTI is much more burdensome because it is an annual tax and filing obligation, not a one-time obligation like the Transition tax. Second, we do not receive ANY of the benefits that Google or Apple get, like foreign tax credits."
As Mr Silver's case proceeds to a ruling, we'll keep you up to date on developments, and for more details on the technical elements of the legal case, do check out Mr Silver's website at https://www.silvercolaw.com/post/in-lawsuit-massive-win-against-irs-treasury.