Top International Tax Cases to Watch in 2nd Half of 2025

Tax attorney Joshua Odintz was quoted in a Law360 article previewing notable international tax cases to watch throughout the remainder of 2025. The IRS faces multiple challenges to transfer pricing regulations, along with questions regarding the economic substance doctrine and how the agency allocates overseas income. The litigation takes place against the backdrop of the U.S. Supreme Court's 2024 Loper Bright ruling overturning Chevron deference and leaving IRS more vulnerable to challenges to its interpretations of ambiguous statutes. Mr. Odintz commented on the cases McKesson Corp. et al. v. U.S., 3M Co. et al. v. Commissioner, The Coca-Cola Co. et al. v. Commissioner and Facebook Inc. et al. v. Commissioner, which involve transfer pricing and blocked income rules. He noted that, with regard to the McKesson case, which stems from Section 482 of the Internal Revenue Code that grants the U.S. Department of the Treasury broad authority to reallocate income, Loper Bright could play a key role in the outcome, given that the actual text of the law is short but has spurred hundreds of pages of implementing regulations.

"I'm curious, especially if the Supreme Court gets its hold on 482, what this means under Loper Bright," he said. "It's very possible that we could see large swaths of the 482 regulations challenged."

READ: Top International Tax Cases to Watch in 2nd Half of 2025