In brief
On 31 March 2023, the United States District Court for the Western District of Tennessee granted FedEx’s motion for partial summary judgment and invalidated Treas. Reg. § 1.965-5(c)(1)(ii), which purported to disallow credits for foreign taxes paid or accrued associated with Offset Earnings, as described below. Order, FedEx Corp. & Subs. v. United States , 20-cv-2794 (W.D. Tenn. 31 March 2023). The Court invalidated the foregoing regulation (“ Final Rule ”) as contrary to statute under Chevron Step One and further held that the government’s interpretation of the relevant statutory text was unreasonable under Chevron Step Two.
In […]
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