IRS’s Deficiency Notice Practice Draws Tax Court Rebuke

The US Tax Court on Monday called out a deficiency notice the IRS inaccurately reconstructed during the pandemic in an answer to a taxpayer, the latest rebuke to the agency which has been hammered by recent court setbacks.

The Internal Revenue Service has come under fire recently for making misstatements to the Tax Court in backdating taxpayer penalties. The court last week ordered the agency to identify when it became aware of these actions.

The Tax Court has “no confidence that the slipshod-cut-and-paste” status report the IRS presented to the court was the version of the notice of deficiency it ...