Liberty Global v. United States
CourtCourt of Appeals for the Tenth Circuit
Date FiledAugust 17, 2026
Docket23-1410
StatusPublished
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Full Opinion
Appellate Case: 23-1410 Document: 163 Date Filed: 08/17/2026 Page: 1
FILED
United States Court of Appeals
PUBLISH Tenth Circuit
UNITED STATES COURT OF APPEALS August 17, 2026
Christopher M. Wolpert
FOR THE TENTH CIRCUIT Clerk of Court
_________________________________
LIBERTY GLOBAL, INC.,
Plaintiff - Appellant,
v. No. 23-1410
(D.C. No. 1:20-CV-03501-RBJ)
UNITED STATES OF AMERICA, (D. Colo.)
Defendant - Appellee.
------------------------------
THE CHAMBER OF COMMERCE OF
THE UNITED STATES OF AMERICA, et
al.,
Amici Curiae.
_________________________________
ORDER
_________________________________
Before HOLMES, Chief Judge, HARTZ, TYMKOVICH, MATHESON,
BACHARACH, PHILLIPS, McHUGH, MORITZ, EID, CARSON, ROSSMAN, and
FEDERICO, Circuit Judges.
_________________________________
This matter is before the court on Plaintiff-Appellant Liberty Global Inc.’s Petition
for Panel Rehearing or Rehearing En Banc and Appellee’s Response to Petition for
Rehearing. Upon careful consideration of the petition and the response, we direct as
follows.
Appellate Case: 23-1410 Document: 163 Date Filed: 08/17/2026 Page: 2
The pending motions for leave to file amicus briefs are GRANTED. All amicus
briefs submitted in connection with the court’s consideration of whether to grant en banc
rehearing will be filed as of the date they were submitted.
Appellant’s request for panel rehearing is DENIED.
The petition and response were transmitted to all judges of the court who are in
regular active service, and a poll was called. The poll did not carry. Consequently,
Appellant’s request for en banc rehearing is DENIED.
Judges Hartz, Tymkovich, and Eid voted to grant en banc rehearing. Judge Eid has
filed a separate dissent from the denial of en banc rehearing, which is joined by Judges
Hartz and Tymkovich.
Entered for the Court,
Per Curiam
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Appellate Case: 23-1410 Document: 163 Date Filed: 08/17/2026 Page: 3
23-1410, Liberty Global, Inc. v. United States
EID, Circuit Judge, dissenting from denial of petition for rehearing en banc.
Liberty Global, Inc. is a U.S. telecommunications corporation that sought to
exploit a tax loophole created by the 2017 Tax Cuts and Jobs Act (“TCJA”), Pub. L.
No. 115-97, 131 Stat. 2054 (codified as amended in scattered sections of I.R.C.).
Through a series of steps titled “Project Soy,” Liberty Global and its foreign affiliates
repatriated foreign-corporate income by changing its corporate form, capital
structure, and selling one of its subsidiaries before the last day of the tax year to
generate a deduction under I.R.C. § 245A. The district court held that Liberty Global
is not entitled to this deduction under the “economic substance doctrine,” as codified
in I.R.C. § 7701(o), and the panel majority agreed.
While this may seem like a complicated question about tax law, this case
instead presents an important and straightforward question of statutory interpretation
regarding how and when to apply the codified economic substance doctrine, defined
as “the common law doctrine under which tax benefits . . . with respect to a
transaction are not allowable if the transaction does not have economic substance or
lacks a business purpose.” I.R.C. § 7701(o)(5)(A). Section 7701(o) clearly states
that the economic substance doctrine applies “[i]n the case of any transaction to
which the economic substance doctrine is relevant” and further explains that “[t]he
determination of whether the economic substance doctrine is relevant to a transaction
shall be made in the same manner as if this subsection had never been enacted.” Id.
§ 7701(o)(1), (o)(5)(C). This case turns on how we interpret the meaning of
“relevant” in § 7701(o).
Appellate Case: 23-1410 Document: 163 Date Filed: 08/17/2026 Page: 4
I believe the panel majority’s holding that the economic substance doctrine is
relevant when taxpayers attempt “to obtain a benefit not intended by Congress” gives
too much deference to courts and the government to provide necessary clarity to
taxpayers. Liberty Global, Inc. v. United States, 174 F.4th 1208, 1218 (10th Cir.
2026). As I explained in dissent, I would interpret § 7701(o) to require a meaningful
threshold relevancy determination, and I would make this determination by
examining how courts have applied the economic substance doctrine under the
common law. See id. at 1226–32 (Eid, J., dissenting). This would be in line with the
recent Tax Court holding in Patel v. Commissioner, 165 T.C. 171 (2025), where the
court concluded that § 7701(o) “requires a relevancy determination” which “is not
coextensive with the two-part test set forth in § 7701(o)(1)(A) and (B).” Id. at 188;
see also id. at 189–92 (determining the relevance of the economic substance doctrine
to the provision at issue by examining how previous courts applied this doctrine).
Accordingly, I respectfully dissent from the court’s order denying en banc
review.
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