Financial Planning Quotes Leila Carney on Chevron Decision

At least five Supreme Court decisions from the momentous term that ended earlier this month could carry implications for years far into the future of wealth management.

The end of a 40-year-old legal doctrine granting deference to federal agencies in their interpretation of laws may pose the biggest impact to financial advisors and their clients, if the ruling in a case involving an environmental rule translates to broader shifts in the guidelines for taxes, financial regulations or forms of investment advice.

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The end of the Chevron doctrine "will have a dramatic impact" in the way that the Loper Bright decision "gives taxpayers a fighting chance to take on tax regulations that have no basis in the code," and it "really is going to open the floodgates for litigation," said Leila Carney, a Member of the Caplin & Drysdale law firm who represents clients before the IRS.

"There are tax regulations that have no basis in the tax code," Carney said in an interview. "They are expected to do a lot of work beyond the statute, but that work shouldn't have no basis in the statute. They do need to color inside the lines."

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