On March 3, 2022, the U.S. Court of Appeals for the Sixth Circuit ruled in Mann Construction, Inc. v. U.S.1 the IRS must follow the Administrative Procedures Act (APA) when identifying “listed transactions” for purposes of applying the I.R.C. § 6707A penalty. Mann Construction may have far-reaching implications for taxpayers penalized for failing to disclose listed transactions. Moreover, the decision further clarifies the types of IRS guidance that must comply with the APA.
6th Circuit Rules IRS Must Follow Administrative Procedures Act in ‘Listing’ Transactions, Raising Questions on Extent of Case’s Application
