Ex-Ch J Kathleen (“TBS = The Big Shillelagh”) Kerrigan and her colleagues are far too well-bred to use such language as first hereinabove appears at the head hereof (as my expensive ex-colleagues would say), but that is the gist of Siemens Medical Solutions USA, Inc. and Consolidated Subsidiaries, 167 T. C. 5, filed 7/15/26.

Ex-C h J TBS follows Varian (see my blogpost “We Don’t Need No Stinkin’ Distributions,” 8/26/24) in dumping Reg. Section 1.245A-5T.  The multiple mismatches in TCJA affecting Sections 245A, 951A, and 965 (Mandatory Repatriation Tax) were Congress’ attempt to territorialize and deuniversalize CFC taxation and level the playing field for onshore-owned offshores.

IRS’ regulatory attempt to cut the freebie in half founders on Loper Bright.

“Section 245A allows a 100% deduction for qualifying distributions after December 31, 2017. Treasury’s adopted regulation disallows 50% of the deduction for distributions that Treasury admits satisfy the plain terms of the statute, using criteria that appear nowhere in the statute. This creates a contradiction, and the statute must prevail.” 167 T. C. 5, at pp. 15-16.

And every Tax Court Judge (except Judge Rose E. (“Cracklin’) Jenkins, who took no part) says “amen!”