Supreme Court Case Could Bring Change to Overseas Tax Codes

Posted December 4, 2023

On Tuesday, the Supreme Court will hear arguments in Moore v. U.S., a case examining federal tax codes, that could have long-lasting effects on corporations’ mandatory repatriation tax.

Arguments will center on how U.S. firms bring overseas profits back into the nation that were earned by foreign subsidiaries. In 2017, a tax law passed a one-time levy on corporate profits earned outside the U.S.

But the plaintiffs, Charles and Kathleen Moore, argue that their income from an India-based company they had invested in was not yet realized before it had been taxed. The two are asking for a $14,729 refund.

If the Moores win, investors and companies could demand billions of dollars in refunds tied to the 2017 law in addition to a slew of lawsuits aimed at the government, the Wall Street Journal reports.

The one-time levy enacted by the 2017 law resulted in nearly $340 in revenue for the U.S. government.