IRS Asks High Court To Weigh In On Tax Dodge Penalty

Law360, New York (September 20, 2013, 8:39 PM EDT) -- The Internal Revenue Service petitioned the U.S. Supreme Court on Tuesday to decide whether the agency can penalize taxpayers for an underpayment of income tax attributed to a transaction that has no other purpose than to reduce tax liability.

The tax agency asked the high court to review a Fifth Circuit ruling that blocked it from assessing a 40 percent penalty against a Mississippi businessman who engaged in an $18 million tax avoidance scheme. The appeals court backed a district court ruling that the penalty, for...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.