Court Stays GILTI Challenge Pending Outcome Of Similar Case

By David Hansen  February 17, 2021, 3:07 PM EST

A federal court won't rule on whether an Israeli law firm can challenge IRS regulations governing the tax on global intangible low-taxed income until a similar case involving the transition tax on foreign earnings is decided, the court said.

Both actions hinge on whether plaintiff Monte Silver, an expatriate attorney, is considered a "small entity" under the Regulatory Flexibility Act giving the court jurisdiction to decide the case, U.S. District Judge Colleen Kollar-Kotelly said in an order Tuesday.

Silver is challenging regulations issued under two provisions of the 2017 U.S. TCJA -GILTI, set forth in Internal Revenue Code Section 951A, and the transition tax under Section 965.

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