Court in Texas Strikes Down Anti-Inversion Regulations

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The anti-inversion regulations issued by Treasury in 2016 were held unlawful due to lack of a notice-and-comment period under the Administrative Procedure Act (APA). The U.S. District Court for the Western District of Texas concluded that the regulations were unlawfully issued without adherence to the APA’s notice-and-comment requirements. The court stated that, where an agency action is carried out “without observance of procedure required by law,” the court shall “hold unlawful and set aside” the action. 5 U.S.C. 705. Thus, the court set aside the anti-inversion regulations and granted the Chamber of Commerce’s motion for summary judgment with respect to the notice and opportunity for comment claim. See the full order at Chamber v IRS – Anti-Inversion

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