Monte Silver: Small Business Owner Files Lawsuit Against the U.S. Treasury and the I.R.S. with Regard to the Transition Tax Regulations

WASHINGTON, Feb. 7, 2019 /PRNewswire/ --

Monte Silver, an American small business owner has filed a complaint in the United States District Court for the District of Columbia against U.S. Treasury and Internal Revenue Service (IRS). The lawsuit challenges the recently issued Transition tax regulations as applied to small businesses and their owners. The lawsuit seeks the remand of the regulations to Treasury/IRS and relief for small business owners from the regulations and underlying Transition tax, recently passed as part of the Tax Cut & Jobs act.

The challenged regulations were issued in mid-January 2019.  The lawsuit alleges that in issuing the regulations, the Treasury/IRS violated the Regulatory Flexibility Act, Paperwork Reduction Act, and Administrative Procedural Act by failing to address the unique situation of small businesses, as required by law, when small businesses were not the target of the underlying law or interpretive regulations.

"This lawsuit is the culmination of an entire year of grassroots advocacy by small business owners," says Monte Silver, the Plaintiff, small business owner, and attorney whose practice focuses on U.S. taxation.  "Recognizing the tremendous burden which the Transition tax imposed on small businesses, in June 2018, the Treasury granted us a one-year extension to comply with the law, but avoided granting us permanent relief when issuing the proposed regulations in August 2018 by claiming that regulations had no impact on small businesses.  It was at this stage we realized that a lawsuit would be the only way to enforce our rights."

"Small businesses are extremely vulnerable to agency regulation", says Stuart Bassin, attorney of record.  "Certain Federal laws do provide small business owners with protection from burdensome regulation, however small business owners lack the funds and ability to organize themselves to enforce their rights." 

"Given the identical manner in which Treasury/IRS have recently issued a wide variety of regulations, I foresee follow-up lawsuits being filed to protect small businesses, starting with the GILTI regulations," says Silver. 

Lawsuit docket number: 1:19-cv-0024

If the Transition or GILTI taxes impact you, or for media enquiries please contact:

Monte Silver
info@silvercolaw.com
+972-9-960-3799