Moore v. United States: The Mandatory Repatriation Tax Survives Supreme Court Scrutiny (but Barely) by: ROBERT S. HORWITZ
Posted by Hochman Salkin Toscher Perez P.C. 
Posted on Friday, July 12, 2024
On June 20, 2024, the Supreme Court issued its decision in Moore v. United States, 603 U.S. ___, upholding the constitutionality of the Mandatory Repatriation Tax (“MRT”). While it was pending, the case was the subject of more commentary than any tax case in recent memory. Many commentators were in a twitter that a ruling in favor of the Moores would undermine many of the income tax provisions of the Internal Revenue Code (“IRC”). This was because if the Court held that to be taxable, income must be “realized” by the taxpayer, it would superimpose on the IRC the requirement that a taxpayer had to have actually receive the funds. Such a requirement would call into question the constitutionality of Subchapter K (taxation of partnerships), Subchapter S (taxation of S corporations) and a number of other provisions of the IRC. These fears proved unfounded.
