Tax News

CCH (cch.taxgroup.com) reports:

  Three challenges that an individual raised in connection with his deficiency were dismissed. The Tax Court lacked jurisdiction over penalties imposed under 31 U.S.C. sec. 5321 for the taxpayer's failure to file foreign bank account reports (FBARs) disclosing his Swiss bank accounts. While FBARs had to be filed with the IRS, penalties for failing to file them were not subject to the deficiency procedures that made up the foundation for most Tax Court jurisdiction. Additionally, even if the IRS could use a lien or levy to collect the penalties, and even if the court would have jurisdiction over a challenge to such a lien or levy, the taxpayer had not alleged that the IRS had taken any collection action with respect to the penalties.

  The court also lacked jurisdiction over a deficiency that arose in a year that was not included in the taxpayer's deficiency notice. Finally, it lacked jurisdiction over his challenge to deficiency interest that had not yet been assessed. Since there was no assessment, there was no IRS decision about abating the interest that would be subject to the court's review.

J.B. Williams III, 131 TC No. 6, Dec. 57,547

Other References:

 
Code Sec. 7442

  CCH Reference - 2008FED ¶42,058.122

  CCH Reference - 2008FED ¶42,058.139

  CCH Reference - 2008FED ¶42,058.151

  Tax Research Consultant

  CCH Reference - TRC LITIG: 6,112
CCH Reference -
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CCH Reference -
TRC LITIG: 6,116