Justices Won’t Review IRS Penalty Window for Tax Preparer Fraud

The US Supreme Court declined Monday to hear a case challenging the IRS’ unlimited time period to impose penalties on taxpayers when their tax preparers commit fraud.

The court’s decision to decline Stephanie Murrin’s case allows a Third Circuit ruling against her to stand. Murrin’s tax preparer filed fraudulent returns on her behalf in the 1990s but wasn’t audited until 2019. She argued the IRS shouldn’t have an unlimited amount of time to investigate tax fraud when the fraud is committed by a third party.

Murrin also argued this case created a circuit split because the Federal Circuit came down ...