IRS Releases Final Regs on Supervisory Approval of Penalties (1)

The Treasury Department and IRS on Friday released final regulations on supervisory approval of penalties, making only minor modifications to the rules it proposed in 2023.

The final rules (TD 10017, RIN: 1545-BP63) detail penalty approval requirements under Section 6751(b), whch provides that certain penalties must be approved by a supervisor of the IRS employee who determines the penalty. Some penalties are exempted from the supervisory-approval requirement, including penalties that are “automatically calculated through electronic means.”

The rules finalize proposed rules that the agencies issued in April 2023, in an attempt to provide clarity following a spate of litigation ...