The Supreme Court rejected Thursday a challenge to a 2017 tax law passed by Congress.
The case, Moore v. United States, considers whether the 16th Amendment permits taxing unrealized gains. Kathleen and Charles Moore sued for a refund in 2019 after they were hit with a $14,729 tax bill for their investment in an overseas company, though they never received any payment in earnings from the company.
The bill followed Congress’ passage of the 2017 Tax Cuts and Jobs Act, which imposed a one-time Mandatory Repatriation Tax (MRT) on shareholders with a 10% stake in foreign companies that earned profits, regardless of whether or not those profits were received.
