Davis Polk partner Mario Verdolini was quoted in Law360 discussing the major federal tax cases practitioners are watching in 2026.

The article highlights the Tenth Circuit’s upcoming decision on the economic substance doctrine in Liberty Global v. U.S. as an important case to watch for its potential influence on the IRS’s ability to curb tax avoidance arrangements. The article notes that while the Tenth Circuit heard oral arguments over a year ago, anticipation for a decision increased after the U.S. Tax Court in November released its own opinion on the matter in Patel v. Commissioner.

Commenting on the upcoming decision, Mario says that if the Tenth Circuit agrees with the Tax Court’s analysis in Patel, “it would set the IRS back in asserting the economic substance doctrine as a challenge to taxpayers’ positions.” Mario added that it could result in “more freedom in tax planning, relatively speaking.”

“Top Federal Tax Cases To Watch In 2026,” Law360 (January 2, 2025) (subscription required)

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