Case: Accuracy-Related Penalties Upheld, Supervisory Approval Timely (11th Cir.) (IRC §6751)

The U.S. Tax Court properly upheld the IRS’s imposition of accuracy-related penalties against Taxpayers, the U.S. Court of Appeals for the Eleventh Circuit held, affirming the Tax Court’s decision. Taxpayers, a married couple, challenged a determination by the IRS that they owed approximately $2 million in back taxes and penalties for the 2008 tax year. They argued that I.R.C. §7443(f), allowing removal of Tax Court judges only for cause, was unconstitutional, and that the IRS violated §6751(b)(1) by not obtaining proper supervisory approval for the penalties. The Tax Court rejected both arguments. The appeals court declined to address the constitutional ...