FBAR Petitioners Appeal Ruling Denying IRS Collection Hearing

A couple who allegedly failed to disclose foreign financial accounts to the US government challenged the Tax Court’s decision that the penalties they face aren’t subject to collection due process statutes because they aren’t taxes.

Stephen C. and Judy A. Jenner sued the IRS for rejecting their demand for a collection due process hearing before the agency began withholding Social Security benefits in order to satisfy their nondisclosure penalties. The Tax Court upheld the IRS’s determination that their penalties weren’t taxes, and therefore weren’t subject to CDP hearing requirements under IRC Sections 6320 and 6330, prompting the couple to ...