German Company Blames $1.2 Million Tax Deficiency on Bad Advice

A German aluminum manufacturer is suing the IRS, arguing that its $1.2 million in tax deficiencies and penalties should be excused on account of its lack of familiarity with the US Tax Code and “good faith” reliance on qualified professionals.

Alanod Holding GmbH told the US Tax Court Wednesday that the 2015 and 2016 income tax deficiencies the IRS cited stem from failure by the company’s advisers to inform corporate leaders of the requirement to file a foreign corporation tax return, applicable deadlines, and the consequences of missing those deadlines.

Alanod Holding’s German leadership didn’t have “training, education, or skills” ...