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“The Case for a Statute of Limitations for Promoter Penalties”

July 13, 2023

Tom Cullinan's article, “The Case for a Statute of Limitations for Promoter Penalties,” in Tax Notes

Tax Notes

Chamberlain Hrdlicka Shareholder Tom Cullinan argues in an article published in Tax Notes on July 10, 2023, that a statute of limitations should apply to tax shelter promoter penalties, to help speed up the enforcement of rules against abusive transactions, limit the pool of affected taxpayers and because public policy supports it.

“In the past decade, the Supreme Court has twice issued unanimous opinions rejecting government efforts to narrow the applicability of [one of the potential statutes of limitation],” Cullinan writes. “I believe that the Court that issued those opinions would likewise reject the government’s argument that the IRS has forever to assess promoter penalties.”

Cullinan, who is based in the firm’s Atlanta office, explains how decisions holding that there is not a statute of limitations have created multiple conflicts in the United States appellate courts, which supports Supreme Court review.

To learn more, subscribers may access the article online here