STEVEN TOSCHER Quoted in Tax Notes on Foreign Reporting Penalty Case Tackles Novel Constitutional Issues
Posted by Hochman Salkin Toscher Perez P.C. 
Posted on Thursday, April 18, 2024
Steven Toscher was quoted in a Tax Notes Article on the Tax Court’s recent decision in Mukhi v. Commissioner concerning an 8th Amendment challenge to foreign trust information reporting penalties.
While the Tax Court rejected the 8th Amendment challenge to foreign trust information penalties, the controversy and arguments will continue. As noted by Steve ….
“. . . the government will continue to argue that tax penalties aren’t subject to the excessive fines clause, adding that there is “a long line of precedential support” for that position, going back to Mitchell. Still, he argued, taxpayers should continue to advance the argument, and they could prevail in the right case.”
“The information reporting penalties under the code are draconian and excessive [and] have little or no relation to the conduct involved,” Toscher said. “This is especially true where the government piles on with multiple penalties — where the tax harm itself is very small. Smart tax administration would suggest the government show restraint, but where they do not, it will be the role of the courts to protect taxpayers.”
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