In light of the prior IRS courtroom losses, Mayo argued that the new regulation was invalid, an argument that was accepted by a lower trial court but reversed on appeal.

FORBES: The Supreme Court Expands The IRS's Ability to Write the Tax Rules

The company subsequently won the case but was later forced to admit that it had made a secret settlement with the plaintiffs during the trial, which meant that the verdict was invalid, the BMJ reported.

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