IRS Says Chevron Ruling Favors Its Foreign Entity Fight, Not 3M

The US Supreme Court’s abandonment of Chevron deference cuts in favor of the IRS in its long-running legal battle over transfer pricing, not in 3M Co.'s, the agency told a federal appeals panel.

The IRS replied Friday to 3M’s response to the agency’s July 5 citation of supplemental authorities, arguing that its transfer-pricing adjustment is proper under the commensurate-with-income requirement under the Internal Revenue Code. It said that the June developments under Loper Bright Enterprises v. Raimondo work in favor of the IRS, not 3M, which the company cited in appellate briefs.

“As for the reasoned-decisionmaking standard mentioned by ...