Case: U.S. Tax Court Rules Accuracy-Related Penalty Under IRC §6662 Falls Within Public Rights Exception, Denies Jury Trial

The U.S. Tax Court held that the accuracy-related penalty under IRC §6662 falls within the public rights exception to the Seventh Amendment and does not require a jury trial, denying the taxpayer’s motion for partial summary judgment. Taxpayer, a partnership, claimed a $44 million deduction for a charitable contribution related to a conservation easement donation. The IRS disallowed the deduction and determined an accuracy-related penalty under §6662. The taxpayer filed a petition seeking readjustment and moved for partial summary judgment, arguing that under SEC v. Jarkesy, the penalty was subject to Seventh Amendment protections requiring a jury trial. The court ...