When Are Tax Penalties Excessive?

“In a civil lawsuit that has attracted notice among tax experts, the government wants to collect nearly $3.5 million in penalties from a taxpayer who had a secret Swiss account, although the account balance was never higher than $1.7 million. The lawsuit, U.S. v. Carl R. Zwerner , was filed in federal court in Miami last month.  Spokesmen for the Justice Department and Internal Revenue Service declined to comment on the case. Mr. Zwerner, 86 years old, is a retired specialty-glass importer living in Coral Gables, Fla. The U.S. government alleges he had an undeclared account at an ABN Amro bank in Switzerland from 2004 through 2007.”

http://online.wsj.com/article/SB10001424127887324694904578598230978458720.html

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