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IRS Wants More PenaltiesRobert W. WoodForbes Oct. 18, 2011 |
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 Sometimes when the IRS loses in court, it announces that it isn’t going to follow the court’s decision. That may sound like the height of hubris. But since the IRS operates nationwide and most courts have limited jurisdiction, the IRS can choose to keep fighting elsewhere, even if the court decision is binding in one place. That’s what happened when the Ninth Circuit Court of Appeals decided it would not impose a 40% penalty on the taxpayer in Keller v. Commissioner. The IRS had sought a special 40% gross valuation penalty, but the court said no. Here’s the background. Read More 
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