AICPA Releases Statement on SCOTUS Moore Ruling

In the wake of the Supreme Court's decision on Moore v. United States, the American Institute of CPAs (AICPA) released the following statement:

"For decades, the AICPA has advocated for tax practitioners and, by extension, taxpayers on matters of tax policy and compliance. The decision by the Supreme Court to uphold the lower courts' ruling effectively maintains the status quo for tax policy pertaining to unrealized gains as income. The AICPA looks forward to continuing to work with Congress, the Department of the Treasury and the Internal Revenue Service to ensure tax practitioner and taxpayer compliance with U.S. tax laws to avoid unnecessary penalties."

The Moore v. United States case focused on a tax provision in the 2017 Tax Cuts and Jobs Act (TCJA) which reduced the corporate tax rate and included a one-time tax on earnings of U.S. shareholders in some foreign countries. Prior to the TCJA, companies could defer indefinitely paying U.S. taxes on foreign earnings by parking the profits abroad. The 7-2 decision upheld the lower courts' decision, however the Supreme Court emphasized that the decision is very narrow and does not have broader implications for future cases on the wealth tax.