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In brief

The US Tax Court recently decided two cases further interpreting section 6751(b) procedural requirements requiring supervisory approval for assessing penalties.

Section 6751(b)(1) provides that “no penalty under [the Internal Revenue Code] shall be assessed unless the initial determination of such assessment is personally approved (in writing) by the immediate supervisor of the individual making such determination.” Congress enacted this provision in response to concerns that revenue agents might threaten to impose penalties during an examination to compel taxpayers to settle.

Read the full alert in the North America Tax News and Development | March 2021.


Jonathan Talley is an associate in the Global Tax Practice Group in the Chicago office. He advises clients on a variety of national and multinational tax issues.


Chengwen Tse is an associate in Baker McKenzie’s San Francisco office and a member of the Firm’s Tax Practice Group.