Taxpayers’ Right to Fight Tax Rules May End Up at Supreme Court

The Supreme Court may have to grapple with the question of when taxpayers can challenge Treasury regulations amid growing debate in the lower courts.

The Anti-Injunction Act prohibits lawsuits trying to restrain officials from assessing or collecting taxes. CIC Services LLC argued the act didn’t block its suit against the IRS over a requirement to report micro-captive insurance transactions. The firm plans to appeal to the Supreme Court after it was denied review by the U.S. Court of Appeals for the Sixth Circuit late last month, its attorney told Bloomberg Tax.

If the Supreme Court were to take ...