The recent Supreme Court decision in Moore v. United States has several important implications for tax law and policy:
1. Narrow ruling: The Court upheld the constitutionality of Section 965 of the Tax Cuts and Jobs Act, which imposed a one-time tax on undistributed foreign income. However, the 7-2 decision was narrow in scope, focusing specifically on the circumstances of the Moore case[1].
2. Realization and attribution: The Court found that the income in question was realized by KisanKraft (the Indian company the Moores invested in) and could be attributed to the Moores as shareholders. This upholds the government's ability to tax undistributed, realized income of pass-through entities[1].