Court Can’t Reduce Penalties On Nonprofits Filing Late Tax Returns

Tax Code gives courts no discretion to override amounts set by statutory formulas

The 9th Circuit Court of Appeals has held that a trial court has no authority to reduce the penalties imposed by the Internal Revenue Service upon nonprofit organizations for filing their Form 990 tax information returns late. It has reversed a federal District Court decision granting a 75% reduction in the penalties assessed against the Service Employees International Union and a subsidiary. (Service Employees International Union v. U.S., No. 08-16105, 3/17/10.)

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Court Can’t Reduce Penalties On Nonprofits Filing Late Tax Returns

Court Can’t Reduce Penalties On Nonprofits Filing Late Tax Returns