IRS Sanctioned by Court for ‘Bad Faith’ on Backdated Document

The IRS will have to pay sanctions because its attorneys acted in bad faith by failing to come clean about the date that a $15.2 million conservation easement penalty was approved, the US Tax Court ruled Tuesday.

The court said Internal Revenue Service counsel “knew or should have known” the approval date they supplied to the court was wrong by Nov. 2, 2022, because that’s when the supervisor in charge of approving the penalty told agency counsel she wasn’t sure the date given to the court in August 2022 documents was accurate. However, the agency ...