The Supreme Court's rejection of an 80-year-old woman's challenge to an IRS penalty for failing to report taxes on a foreign account could encourage the tax-collection agency and localities to issue civil penalties as a means to increase revenue, the...
Sam Gedge, an attorney for the libertarian nonprofit public interest law firm Institute for Justice, represented Monica Toth, who unintentionally failed to report taxes on a foreign account and was penalized more than half of the money in the account — about $3 million — after she corrected the error in an updated filing.
Ms. Toth became a U.S. citizen in the 1980s after she immigrated to the United States from Argentina, where she was born after her father fled Germany in the 1940s after being assaulted for being Jewish. A successful businessman, he used a bank in Switzerland, based on his experience in fleeing Germany for Buenos Aires.
Lower courts ruled against Ms. Toth, and Mr. Gedge asked the Supreme Court to hear her challenge to the fine, arguing it ran afoul of the Eighth Amendment, which prohibits excessive fines. “These kinds of civil penalties and fines have real consequences for real ordinary people and it is something the courts need to take seriously,” he said.
While overseas, Mr. Bittner earned millions of dollars from real estate, restaurants, manufacturing, hotels, construction and aquaculture, according to court documents. During his time outside the U.S., he filed tax returns for some of the years he was abroad but did not include information about his foreign accounts.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
IRS Issues Clarification on Rebates, Says Illinois Taxpayers Can File ReturnsMillions of taxpayers were asked to delay filing their 2022 tax returns after questions arose over whether or not specific rebates should be included as taxable income, and now the Internal Revenue Service has given their answer.
Read more »
IRS tells millions of taxpayers to wait to file returnsThe Internal Revenue Service is telling some people to wait to file their 2022 tax return, a group that could represent millions of taxpayers.
Read more »
IRS delivers ruling on whether state stimulus checks are taxableThe IRS previously told taxpayers in states that awarded stimulus or tax refund checks to hold off filing tax returns until it could rule on whether the checks were taxable.
Read more »
Sell on eBay or Get Paid on Venmo? You Probably Owe the IRS TaxesWhether you sell vinyl records on eBay, teach tennis lessons and get paid via Venmo, or rent your home on Airbnb, your side hustle can end up as a tax hassle. Here's how to navigate IRS rules.
Read more »
IRS says many 2022 special state payments are not subject to federal tax | CNN BusinessThe Internal Revenue Service has good news for millions of taxpayers in 17 states who received a one-time special state payment last year to offset inflation and other negative economic impacts: Those payments won't be subject to federal income tax.
Read more »
IRS Won't Tax Most Relief Payments Made by States Last YearIllinois is among 21 states that issued relief checks to residents last year. The IRS provided 11th hour guidance Friday, announcing those checks aren’t subject to federal taxes.
Read more »