Can You Request a Collection Due Process Hearing on FBAR Collections?
December 11th, 2024
The penalties imposed for failure to file a Foreign Bank Account Reporting form (FBAR) can be substantial. The IRS has many mechanisms to collect on those debts. If you have received a notice of collection efforts, can you request a collection due pr…
Read More
Categories: FBAR
Share
IRS Can Collect FBAR Penalties from Estate Distributees, Court Says
November 11th, 2024
They say that nothing is certain except death and taxes. A recent decision by the United States District Court for the Southern District of New York says, between the two, taxes win. The judge granted the IRS authority to collect FBAR penalties from…
Read More
Categories: FBAR
11th Circuit Rules Some (Not All) FBAR Penalties Unconstitutional
October 8th, 2024
Penalties for willful failure to file reports of foreign financial accounts – commonly called FBARs – are some of the highest civil penalties the government can impose. But until now, no court had been willing to say those fines were excessive. I…
Read More
Categories: FBAR
Ninth Circuit Upholds Reckless FBAR Penalties Against Tax Preparer
September 6th, 2024
The Ninth Circuit – known as one of the most taxpayer friendly of the federal circuit courts – has joined many other courts in holding that reckless violations of the Bank Secrecy Act were sufficient to uphold willful FBAR penalties. The Court af…
Read More
Categories: FBAR
FBAR Negligence or Willfulness? Court Says Jury Must Decide
August 7th, 2024
There have been a lot of cases in the last several years defining willfulness in the context of failures to file FBAR forms with the IRS. But a recent decision from the Northern District of California addresses the issue slightly differently. Instead…
Read More
Categories: FBAR
Can an Employee’s Illness be a Reasonable Cause for a Delayed Business Tax Filing?
July 9th, 2024
Small businesses, and even large ones, depend on their top employees to do everything from interfacing with customers to filing company tax returns. When a key employee has a serious physical or mental illness at tax time, it can create problems for…
Read More
Categories: Tax / IRS Penalties
D.C. Circuit Court Restores IRS’s Foreign Business Assessment Authority
June 6th, 2024
U.S. taxpayers with foreign business interests must disclose those interests to the IRS or face substantial penalties. But for the past year, the IRS’s foreign business assessment authority has been off-line. A 2023 Tax Court decision held that the…
Read More
Categories: Tax / IRS Penalties
IRS Denied Trust Fund Recovery Penalties Against “Errand Boy” Employee
May 3rd, 2024
Imagine working as an employee for a company for two years and then having the IRS impose trust fund recovery penalties worth more than 10 times your annual salary. That’s exactly what happened in Powell v IRS, but when it came time for trial, the…
Read More
Categories: Tax / IRS Penalties
What Counts as Evidence in an Innocent Spouse Lawsuit?
April 9th, 2024
Can the IRS present new evidence in support of its administrative innocent spouse determinations? A recent Tax Court decision on a motion to strike provides new insight on what counts as evidence in an innocent spouse lawsuit. While the party present…
Read More
Categories: Tax / IRS Penalties
Update: Sixth Circuit Court Calls FBAR Filing Failures “Objectively Reckless”
March 11th, 2024
The Sixth Circuit Court of Appeals, which controls much of the Midwest, has joined several other appellate courts to confirm that recklessness is enough to support willful penalties for FBAR filing failures. Reviewing the case of United States v. Kel…
Read More
Categories: FBAR
