Sam Lapin discussed the Internal Revenue Service's (IRS) focus on creating new regulations targeting abusive tax transactions during a period of weakened regulatory authority. The proposed rules would increase reporting requirements for certain transactions like basket contracts, and other areas of increased IRS enforcement such as syndicated conservation easements and micro-captive transactions. These regulations would classify certain transactions as "listed transactions," which would impose additional reporting obligations and penalties for non-disclosure. Given the recent U.S. Supreme Court decision overturning the Chevron doctrine—which previously required courts to defer to agency interpretations of ambiguous laws—and increased Administrative Procedure Act (APA) litigation, these new rules could face legal challenges. "I would expect that taxpayers and material advisers are already looking at these proposed regulations and trying to figure out if there's any vulnerabilities," Lapin said. The IRS's efforts follow a 2022 court ruling that invalidated certain guidance for not undergoing the formal notice-and-comment process. While IRS can enforce these new rules under Section 6011 of the federal tax code, Lapin noted, "Taxpayers may still scrutinize the notice-and-comment period process for potential APA challenges and how the IRS decided on which transactions need extra reporting."