In a recent court case, a taxpayer hit with an IRS penalty of $2,173,703 claimed that the penalty violated the excessive-fines clause of the U.S. Constitution. She’s now seeking help from the U.S. Supreme Court. The penalty involves her failure to file a required “Report of Foreign Bank and Financial Accounts” to timely disclose a multi-million-dollar foreign bank account. The IRS found her failure to file was willful and applied the fine. She didn’t pay it and the IRS sued to collect. After the fine was upheld in the First Circuit U.S. Court of Appeals, the taxpayer petitioned the Supreme Court for a hearing. It’s unknown whether the high court will take up the case. (Toth, 4/29/22)
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