The Seventh Amendment’s right to a jury trial doesn’t apply to a partnership’s dispute over tax penalties despite a recent US Supreme Court ruling, the US Tax Court said Monday in a precedent-setting opinion.
The Seventh Amendment “does not apply to suits against the sovereign,” the Tax Court said, rejecting Riddle Aggregates LLC’s argument that Securities and Exchange Commission v. Jarkesy counsels against the IRS’s imposition of accuracy-related tax penalties under IRC Section 6662.
Jarkesy halted a civil penalty levied by an in-house SEC tribunal because the Seventh Amendment requires a jury trial before such penalties are assessed. But ...