Limiting the Attorney Negligence Excuse for Late Returns: United States v. Boyle

In US versus Boyle (1985), the US Supreme Court held that mere reliance on an attorney is not reasonable cause for late filing of a tax return because the Internal Revenue Code imposes a personal, nondelegable duty on the taxpayer, rather than on the taxpayer's agent or employee, to ensure prom...

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Bibliographic Details
Published in:The Tax lawyer 1986-01, Vol.39 (2), p.333-338
Main Author: Reynolds, Sharon P.
Format: Article
Language:English
Subjects:
Attorneys
Deadlines
Estate taxes
Federal court decisions
Federal taxes
Fines
Fines & penalties
Late
Liability
Negligence
Reasonable care
Reasonable time
State court decisions
Supreme Court decisions
SUPREME COURT DECISIONS IN TAXATION: 1984 TERM
Tax attorneys
Tax law
Tax preparation
Tax returns
Taxation
Taxpayers
Taxpaying
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Summary:In US versus Boyle (1985), the US Supreme Court held that mere reliance on an attorney is not reasonable cause for late filing of a tax return because the Internal Revenue Code imposes a personal, nondelegable duty on the taxpayer, rather than on the taxpayer's agent or employee, to ensure prompt filing. In distinguishing Boyle from cases in which counsel is sought on a technical matter of tax law, the Court found that reliance on counsel will not substitute for timely filing when a statute imposes an unambiguous deadline. The result is harsh, but necessary, since allowing a taxpayer to escape penalty might signal tax attorneys that filing deadlines need not be met so long as the taxpayer is not informed of them. The ruling ensures that both attorney and taxpayer have an incentive to guarantee timeliness by imposing a standard penalty for late filing on the taxpayer, presumedly leaving the taxpayer free to proceed against the attorney to recover it. However, the Court has still failed to specify what additional steps, if any, the taxpayer can take to escape the penalty.
ISSN:0040-005X
2329-6089