Lee A. Sheppard of TaxNotes quoted the client alert written by Megan L. Brackney and Macdonald Norman about the tax penalty ramifications of SEC v. Jarkesy, et. al. in an article titled “Could Supreme Court Jarkesy Decision Affect Tax Fraud Penalties?” published on August 5, 2024.
From the article:
“Tax shelter promoter penalties and other assessable penalties could be affected by Jarkesy. Megan L. Brackney and Macdonald Norman of Kostelanetz LLP wrote a provocative public memo about the tax penalty ramifications of Jarkesy in which they mentioned the tax shelter promoter penalty. “The section 6700 tax promoter
penalty shares many of the hallmarks of the ‘punitive’ civil fraud penalties at issue in Jarkesy,” Brackney and Norman wrote. All three SEC fraud provisions considered by the Court in Jarkesy reach false statements of material fact (17 CFR sections 240.10b-5, 275.206(4)-8(a)(1), (2)).”
To read the full article, please click here.
