Tax Court Rules IRS Does Not Have Statutory Authority To Assess Penalties For Failure To File Form 5471
Every now and again, a case comes across your desk that makes you say, “Whoa.”
Alon Farhy v. Commissioner is just such a case.
The Tax Court gave Farhy a win, ruling that the IRS could not collect from him in this instance—the IRS had no statutory authority to assess penalties under section 6038. – Forbes – Taxes