Business Groups Sue US Over Tax Inversion

A man walks past Pfizer World Headquarters, Monday, Nov. 23, 2015 in New York. The new tax regulations blocked Pfizer from completing its proposed $160 billion merger deal with Ireland-based Allergan. AP Photo/Mark Lennihan

The U.S. government’s crackdown on tax inversion transactions is coming under fire from the business world.

Two large business groups recently sued the Treasury Department and the Internal Revenue Service (IRS) for abusing power and violating the law.

Treasury and the IRS ignored the clear limits of a statute, and simply rewrote the law unilaterally.

— Thomas J. Donohue, CEO, US Chamber of Commerce