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

Amanda Fronckoski

2 hours ago

man in business suit sit's at his desk looking stressed with his hands over his face

The 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.

For 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).