When not recruiting seminarians to enlighten practitioners, Judge Christian N. (“Speedy”) Weiler manages a busy division of Tax Court. He fends off a Loper Bright counterattack in Alan Hamel and Estate of Suzanne Hamel, Deceased, Alan Hamel, Special Administrator, T. C. Memo. 2025-19, filed 2/25/25.

Yes, I’m late, but blame the overwhelming hospitality of a distinguished professor emeritus of a world-famous medical school (and a friend since our middle school days seventy years ago). Give me a glass of Château d’Yquem and I’ll follow you anywhere.

Back to work, The backstory can be found in my blogpost “One Door Closes, Another Remains Open,” 6/3/24.*

The attack is on Temp. Reg. Section 301.6229(e)-1T, which mandated a specific form and means for notifying IRS of one’s partnership interest under the now-repealed TEFRA two-step.

While Loper Bright certainly effected a change of law sufficient to allow a post-30 day motion for Rule 161 reconsideration, it doesn’t of itself overrule cases where the court relied on Chevron.

And Section 6229(e) is ambiguous when it comes to identifying who is a partner under the old law. Wherefore, Tax Court must use its own independent ratiocinative powers, not merely defer to IRS because its statutory interpretation is permissible.

But the Temp. Reg. passes the test. Judge Speedy Weiler generously allows that IRS “engaged in some level of ‘reasoned decisionmaking’ when deciding to promulgate Temporary Treasury Regulation §301.6223(c)-1T.” T. C. Memo. 2025-19, at p. 8. IRS followed the APA, and while the Notice of Proposed Rulemaking didn’t spell out all the reasoning, it followed the Congressional directive to carry out the statute.

Anyway, the statute itself was amended to take chops (which is what petitioner is fighting about) off the deficiency menu and place it on the partnership (FPAA) tab; and that was already litigated at the partnership level.

Taishoff says it’s unusual that reconsideration merits a T. C. Memo. This one, however, serves notice that broad-spectrum Loper Bright challenges cut little ice in Tax Court.

* https://taishofflaw.com/2024/06/03/one-door-closes-another-remains-open/