Financial Accounting News

SCOTUS May Curb Treasury Civil War-Era Lawsuit Shield (Podcast)

May 29, 2020, 8:46 AM

Trying to get a court injunction against an IRS rule that hasn’t been used yet to take your taxes? You may be out of luck.

A law dating back to the mid-1800s specifically forbids taxpayer lawsuits that challenge many Treasury Department actions that haven’t been enforced yet. The idea behind the law is that, if litigation were to hinder the department’s ability to collect revenue, the government could grind to a halt.

This law is about to get a lot more scrutiny in the coming months now that the Supreme Court accepted a case that challenges its constitutionality. On this week’s episode of our podcast, Talking Tax, reporter Aysha Bagchi speaks with host Siri Bulusu about why the Supreme Court is taking up this case now and about what could happen if it rules against the Treasury Department.

To contact the reporter on this story: David Schultz in Washington at dschultz@bloombergenvironment.com

To contact the editors responsible for this story: Rachael Daigle at rdaigle@bloombergindustry.com; Kathy Larsen at klarsen@bloombergtax.com

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