Supreme Court Leaves IRS Free To Chase Taxpayers Forever Over Preparer Fraud

Taxes Editors' Pick Supreme Court Leaves IRS Free To Chase Taxpayers Forever Over Preparer Fraud. The decision not to hear a Third Circuit case means the time to assess unpaid taxes can remain open when the tax preparer committed fraud—even if the taxpayer didn’t know about it.By Kelly Phillips Erb,

--:-- / --:--This voice experience is generated by AI. Learn more.This voice experience is generated by AI. Learn more.The Supreme Court left a Third Circuit ruling in place that significantly expands when the IRS can go back and assess unpaid taxes, meaning that when there's fraud, the agency can chase you forever.gettyThe Supreme Court declined to hear Murrin v. Commissioner, leaving a Third Circuit ruling in place that significantly expands when the IRS can go back and assess unpaid taxes—even decades after a return was filed—when the person who prepared the return committed fraud. That’s the case, according to the Third Circuit, even if the taxpayer didn’t know anything about the fraud.

The Supreme Court left a Third Circuit ruling in place that significantly expands when the IRS can go back and assess unpaid taxes, meaning that when there's fraud, the agency can chase you forever.gettyBackgroundFor Stephanie Murrin, the immediate consequence is that IRS assessments tied to returns she filed years ago remain timely, despite being made roughly two decades after the returns were filed. According to her petition to the Supreme Court, Murrin faces more than $328,000 in tax, penalties, and interest (the interest that had grown to more than $250,000 by the time the IRS issued the notice of deficiency).