“American taxpayers and businesses deserve clear and consistent tax rules that allow them to confidently comply with the law,” said Rep. Lloyd Smucker (PA-11). “Reconsidering this relic of the Biden administration’s IRS would remove a contradictory compliance burden and help instill a more predictable tax code. The Trump administration has secured historic tax reforms for the American people. We are hopeful that it will remain committed to restoring fairness. We respectfully urge the IRS to rescind this Biden-era regulation, eliminate uncertainty, and restore greater trust in the American tax code.”

“[T]he ruling assumes that related-party transactions inherently lack a legitimate business purpose,” the letter reads. “This assumption is at odds with long-established tax law and the reality of how businesses operate.

We hope IRS Commissioner Billy Long is paying attention.