- In a recent decision, the Third Circuit Court of Appeals held that for a non-US corporation to claim tax deductions in connection with its US real property activities, it must file its tax return within 18 months of the year in which income was earned.
- In so holding, the Circuit Court upheld the validity of Treasury Regulation 1.882-4(a)(3)(i).
- Court analyzed the IRS regulation under Chevron, and found that it was within the scope of Congress’s delegation of rulemaking authority to the IRS.
- Case suggests that Courts will give heightened deference to IRS rulemaking, because tax is “complex and highly technical.”