Call Now (800) 681-1295

Is a penalty assessment ripe for judicial review?

Table of Contents

    The U.S. Tax Court has held that it does not have jurisdiction to review the IRS’s decision to impose an FBAR penalty. In Williams v. Commissioner, upon receipt of a notice of deficiency covering income taxes for years 1993 – 2000, the taxpayer filed a petition seeking, among other things, a redetermination of penalties imposed under 31 U.S.C. § 5321 for failure to file foreign bank account reports (FBARs) to disclose his Swiss bank accounts. The IRS can assess the FBAR penalty and “commence a civil action to recover” it. For certain taxes, the IRS is required to issue a notice of deficiency before making an assessment. Upon receipt of this notice, the filing of a timely petition with the Tax Court triggers the court’s “deficiency” jurisdiction to redetermine the tax shown in the notice. Because the IRS is not required to issue a notice of deficiency before assessing the FBAR penalty, the court reasoned, the FBAR penalty falls outside the court’s deficiency jurisdiction.

    Tax Help Videos

    Representing Clients from U.S. and International Locations Regarding Federal and California Tax Issues

    tax lawyers

    Main Office

    Orange County
    2601 Main St. Penthouse Suite
    Irvine, CA 92614
    (949) 681-3502

    Our headquarters is located in Irvine, CA. Our beautiful 19,700 office space is staffed full-time and always available for our clients to meet with our highly qualified and experienced staff of Attorneys, Certified Public Accountants and Enrolled Agents. We also offer virtual consultations and can travel to meet with clients in one of our satellite offices.

    Outside of our 4 hour initial consultation option, we do not charge travel time or travel expenses when traveling to one of our Satellite offices, or surrounding business districts, where it is necessary to meet personally with taxing authority personnel, make court appearances, or any in person meeting deemed necessary for the effective representation of a client. To make this as flexible, efficient, and convenient as possible, David W. Klasing is an Instrument Rated Private Pilot and Utilizes the Firms Cirrus SR22 to service client’s in California and in the Southwest by air. Offices outside these areas are serviced via commercial jet airlines. None of these costs are charged to our clients.

    Satellite Offices

    (310) 492-5583
    (760) 338-7035
    (916) 290-6625
    (415) 287-6568
    (909) 991-7557
    (619) 780-2538
    (661) 432-1480
    (818) 935-6098
    (805) 200-4053
    (510) 764-1020
    (408) 643-0573
    (760) 338-7035
    (602) 975-0296
    New Mexico
    (505) 206-5308
    New York
    (332) 224-8515
    (512) 828-6646
    Washington, DC
    (202) 918-9329
    (702) 997-6465
    (786) 999-8406
    (385) 501-5934