Case concerns limits of IRS power. The Supreme Court has agreed to hear a tax law case that could "yield billions of dollars for large corporations, block Democrats' proposals to tax wealthy Americans and upend longstanding chunks of the tax code," as the Wall Street Journal describes it. At issue is "whether the 16th Amendment authorizes Congress to tax unrealized sums without apportionment among the states," SCOTUSblog explains.
The case—Moore v. United States—involves a Washington state couple challenging a $14,729 tax bill on income that they say shouldn't count as income. Charles and Kathleen Moore were sent a bill by the IRS saying they owed taxes on income received from their investment in the company KisanKraft. The Moores owned shares in this company for more than a decade but say they never received any income from these shares, because all company profits had been reinvested in the company.
