A recent case may mean that taxpayers filing Kwong-related protective claims won’t see penalty relief after all.
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A recent U.S. Tax Court order is causing a stir, with some practitioners suggesting it could significantly limit taxpayers’ ability to recover penalties and interest assessed during the COVID-19 pandemic. But the fallout may not be quite that simple.
In Bowen v. Commissioner, the court did not decide whether federal tax deadlines were automatically postponed during the COVID-19 disaster period. Instead, it assumed that they might have been—and ruled that the extension would not wipe out the accuracy-related penalties at issue.
Background
The taxpayers, Suzanne and Kenton Bowen, filed a petition in...
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