Monte Silver, Ltd. v. Internal Revenue Service, et al.

This case presents an important question as to the proper application of Article III standing to small businesses who challenge regulations under the Regulatory Flexibility Act, 5 U.S.C. § 601 et seq. (“RFA”). Petitioner, a small business, challenged regulations that were issued by Respondents in implementing the so-called Transition Tax [26 U.S.C. § 965] under the Tax Cuts and Jobs Act of 2017 (“TCJA”), Pub. L. 115–97 (2017). The lawsuit was dismissed for lack of Article III standing. The question presented is whether a small business has Article III standing to bring an RFA action challenging a regulation, where:  it is the object of the regulation; and  where its past and prospective compliance costs are traceable to an RFA procedural violation which is the basis for its standing.