Update on Effect of the DOJ Tax Reorganization on Appellate Section (3/18/26)

The Civil Division’s Tax Litigation Branch filed a motion, here, for a 30-day Extension to file petition for rehearing en banc in brief in Sirius Solutions, LLLP v. Commissioner (5^th Cir. No. 24-60240). The substantive issue in the case is not relevant to this posting on the DOJ Tax Division Alumni Blog, but I provide links at the end of the this blog. In part here relevant, the Motion says (pp. 2-3):

   2. I am an Assistant Director of the Appellate Section of the Civil Division’s Tax Litigation Branch at the United States Department of Justice, n1 and I am the supervisory attorney assigned to this case. Paul Allulis, the lead attorney responsible for briefing and arguing this case, left the Department of Justice and withdrew from this case in late May 2025. Samuel Jones was reassigned as the lead attorney, but Mr. Jones is currently out of the office for an extended period on parental leave. The Appellate Section has lost over 40% of its attorneys since February 2025, due to retirement, resignation, or temporary transfer. Therefore, at this time, it is not possible for me to assign this case to yet another attorney, who would need to devote time to learning the issues  [*3] in this case. Accordingly, I am now handling this matter myself, in addition to my managerial duties.

    n1 As part of a planned Department of Justice restructuring, the Tax Division, which previously handled this case, ceased to exist effective November 30, 2025. At that time the civil litigation functions of the Tax Division, including the Appellate Section handling this case, were transferred to the Civil Division, and into a new Tax Litigation Branch.

   3. Filing of a petition for rehearing en banc may proceed only if authorized by the Solicitor General, after consideration of the views of the Civil Division of the Department of Justice and of the Chief Counsel at the Internal Revenue Service. See 28 C.F.R. Part O, Subpart D, § 0.20(b). This process requires collecting recommendations from agencies interested in the proceeding and of attorneys assigned to the case at the Department of Justice, and their supervisors, which recommendations the Office of the Solicitor General considers in deciding whether to authorize an appeal. This process requires review of the record and consideration of the legal issues by attorneys who were not involved in the trial court proceedings and who are, at the same time, handling other active litigation and managerial duties. Although the process of obtaining authorization is underway, the Department is still engaged in determining whether to pursue further review in this matter. If a petition for rehearing en banc is authorized, it will be necessary to take into account the Solicitor General’s views in drafting the petition for rehearing.

 The Motion states (p. 6 ¶ 6) that the Appellant opposes the Motion.

 Documents relevant to the underlying issue are

1. The Panel Opinion in Sirius Solutions is here (CA5) and here (GS).

2. My blog on the Panel Opinion is Fifth Circuit Knows a Limited Partner When Reads It (Federal Tax Procedure Blog 1/24/26; 1/20/26), here.