Saturday, February 20, 2021
Frank G. Colella (Pace), Time to Prune the Flora—Procedural Due Process, the Full Payment Rule and Assessable Penalties: Larson v. United States, 11 Wm. & Mary Bus. L. Rev. 127 (2019):
In Larson v. United States, the Second Circuit Court of Appeals rejected the opportunity to limit the scope of the Flora “full payment” rule when its strict application in the instant case foreclosed judicial review of the underlying tax controversy. As a result, the decision rubberstamped the IRS’s imposition of assessable penalties without any meaningful judicial review of those actions.
The Article argues that the court’s decision to blindly apply the full payment rule, without considering any form of a hardship exception, effectively denied John Larson his right to due process of law as guaranteed by the Fifth Amendment to the United States Constitution.