TLDR: Key Points

• The recent Supreme Court decision in Loper Bright overruled the Chevron doctrine, impacting tax practitioners.
• Changes in the tax landscape include increased IRS funding under the Inflation Reduction Act and focus on high-income earners, partnerships, and cryptocurrency.

A Different Tax Landscape at Mid-Year

The recent Supreme Court decision in Loper Bright will have lasting effects on tax practitioners. The decision overturned the Chevron doctrine, which allowed federal agencies to create their own laws through reasonable interpretations of statutes. This led to uncertainty in tax compliance and planning, as interpretations could change with each administration.

Many regulations may become invalid following the Chevron decision, creating a more contentious environment for tax practitioners. Additionally, the Biden administration’s IRS funding has enabled the agency to hire more staff and shift its focus to high-income earners, partnerships, and promoters of abusive tax shelters.

In recent years, the IRS has been targeting nonfilers with foreign accounts, individuals dealing with cryptocurrency, and those involved in tax fraud through the Employee Retention Credit. The government is also addressing the ongoing issue of identity theft in tax filings.

Overall, the tax landscape is evolving rapidly, with new challenges and priorities emerging for tax practitioners to navigate. It is crucial for professionals in the industry to stay informed and adapt to these changes to ensure compliance and effectiveness in their work.