Treasury Asks Court To Toss Ky., Tenn.'s Virus Relief Tax Suit

Law360 (July 22, 2021, 4:10 PM EDT) -- Kentucky and Tennessee lack standing to challenge a coronavirus relief law's provision that would allow the federal government to withhold funds from states that lower their taxes, the U.S. Department of the Treasury told a federal court.

Treasury asked the court Wednesday to dismiss the states' suit seeking to block the department and its secretary, Janet Yellen, from enforcing a clawback provision in the American Rescue Plan Act. Treasury said the challenge to the act isn't ripe because the states haven't passed any tax cuts that may be offset by federal aid.

"The offset provision restricts a state only from using...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!