Robert Kovacev was quoted on the implications of the U.S. Supreme Court decision in Loper Bright Enterprises v. Raimondo, which held that courts must use their independent judgment in determining the validity of a regulation without affording any deference to the agency's interpretation of the law. This case, which overturned a deferential standard that had been in place for 40 years, will impact the Internal Revenue Service's (IRS) ability to defend Treasury regulations from taxpayer arguments that the regulations are invalid. "Taxpayers are likely to challenge the validity of dozens of tax regulations and those challenges are much more likely to prevail," Kovacev said. He added, "For years the IRS has issued regulations expanding its power and restricting tax benefits that Congress intended taxpayers to receive." The ruling will also present new challenges as the Biden administration rolls out regulations implementing the Inflation Reduction Act, Kovacev noted, because the IRS will not be able to take for granted that courts will defer to its regulations.