The U.S. Court of Appeals for the D.C. Circuit has granted the petition for rehearing in Murphy v. IRS. In Murphy, a unanimous three-judge panel held unconstitutional a provision of the Internal Revenue Code that taxed as income, compensation for personal injuries unrelated to lost wages or earnings. Note, this is not an En banc rehearing. Rather, the original three-judge panel will rehear the case. Paul Caron has details here. (LvHB)

UPDATE: In my initial post I neglected to note that Orin blogged on the Murphy case here and here.