The Sixth Circuit’s Ultra Vires Opinion in Whirlpool—What Now?

The Sixth Circuit’s Whirlpool opinion on subpart F income violates a Supreme Court mandate for judicial deference to agency regulations. The opinion’s limited precedential value and failure to either apply or invalidate applicable regulations present a dilemma for IRS and Treasury going forward. This article, published in the International Tax Journal, discusses the impact of the Whirlpool opinion on taxpayers residing both within and outside of the Sixth Circuit and the options the IRS and Treasury have to either enforce or not enforce the opinion.