More than 25 years ago, Congress enacted Internal Revenue Code Section 6751(b) to protect taxpayers from the IRS using penalties as a bargaining chip in an effort to coerce taxpayers to settle. Generally, Section 6751(b)...more
The U.S. Court of Appeals for the District of Columbia Circuit (D.C. Circuit) on May 3, 2024, reversed the U.S. Tax Court (USTC) in Alon Farhy v. Commissioner, No. 23-1179 (D.C. Cir. May 3, 2024) by holding that...more
5/17/2024
/ Administrative Procedure ,
Appeals ,
Enforcement Authority ,
Foreign Corporations ,
Foreign Tax ,
Foreign Tax Credits ,
Internal Revenue Code (IRC) ,
Penalties ,
Reporting Requirements ,
Reversal ,
Stare Decisis ,
Statutory Authority ,
Tax Assessment ,
Tax Court
In Flint v. United States, 2022 WL 3593826 (Fed. Cl. 2022), the court held that the executors of an estate could not recover a six-figure "Title 26 miscellaneous offshore penalty" (MOP) the decedent paid to the Internal...more
9/1/2022
/ Audits ,
Breach of Contract ,
Foreign Bank Accounts ,
Income Taxes ,
IRS ,
Offshore Funds ,
Penalties ,
Remediation ,
Reporting Requirements ,
Self-Certification ,
Tax Penalties ,
Tax Returns ,
Willful Violations
The "Report of Foreign Bank and Financial Accounts" (FBAR) penalty has been the subject of much litigation. This Holland & Knight alert focuses on the non-willfulness element of 31 U.S.C. ยง 5321(a)(5)(B). Both the U.S. Court...more
1/10/2022
/ Compliance ,
FBAR ,
Foreign Bank Accounts ,
Income Taxes ,
IRS ,
Penalties ,
Statutory Interpretation ,
Statutory Requirements ,
Tax Audits ,
Voluntary Disclosure ,
Willful Violations