Tax Court Invokes Golsen Rule to Block IRS Penalty Collection

The US Tax Court is shooting down IRS authority to levy penalties for failure to disclose an interest in a foreign business through its use of the Golsen rule.

The court asserted its authority against the IRS by ruling in favor of New York resident Joseph Safdieh, who had petitioned the court pro se to contest both fees and a federal tax lien that were assessed under IRC Section 6038 for the 2005 to 2009 tax years. The court denied the IRS motion for summary judgment in favor of Safdieh, saying the IRS could not levy the penalties against him. ...