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The NAM filed an amicus brief urging the U.S. Court of Appeals for the Ninth Circuit to uphold the Internal Revenue Service’s (IRS) “arm’s-length transaction standard.” The Commissioner of the IRS departed from this longstanding approach in a policy shift, thus destroying the established precedent and reducing its effectiveness. Under the arm’s-length standard, a transaction was judged by looking at how the parties priced it as if they were two independent entities, not parts of the same group of related entities. The NAM’s brief argued that the longstanding, consistent approach was key to avoiding double taxation on cross border transactions. The Ninth Circuit held that the Commissioner did not exceed his rule-making authority and that his rule was entitled to deference. Altera filed a petition for rehearing en banc, and the NAM filed an amicus brief in support of rehearing. On November 12, 2019, the court denied rehearing en banc.