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U.S. Supreme Court,
Tax

Dec. 27, 2024

Supreme Court takes on FCC's taxing power: A game-changer for telecom?

On Nov. 22, 2024, the U.S. Supreme Court agreed to review a Fifth Circuit ruling in Consumers' Research v. FCC, which deemed the FCC's Universal Service Fund funding mechanism unconstitutional, potentially resolving a circuit split and challenging Congress' delegation of taxing power to agencies and private entities.

Imad Matini

Partner SheppardMullin

Imad Matini is a partner in the Business Trial Practice Group in the firm's Washington, D.C. office.

Paul A. Werner

Partner SheppardMullin

Paul Werner is a partner in the Business Trial Practice Group and served as the Practice Group Leader for many years. He is a member of the Firm's Executive Committee and is a past member of its Compensation Committee. Paul is resident in the Washington, D.C. office.

Maria-Laura Coltre

Associate Sheppard Mullin

Business Trial Practice Group

Shutterstock

On Nov. 22, 2024, the U.S. Supreme Court granted certiorari to review a landmark Fifth Circuit ruling that may impact the telecommunications industry and FCC operations more broadly. In Consumers' Research v. FCC, 109 F.4th 743, 748 (5th Cir. 2024), an en banc panel of the Fifth Circuit held the funding mechanism for the FCC's Universal Service Fund (USF) is an unconstitutional delegation of Congress' legislative power to tax. The ruling follows decisions by the...

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