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Non-Willful FBAR Penalties Capped Per Year, Not Account, Court Says
August 10th, 2020
Could the way you do your banking affect how much you pay in IRS filing penalties? Until recently, the answer was universally yes. Now a federal district court judge in Texas has said that for non-willful FBAR penalties, Congress set the cap per year…
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IRS Sues Adult Children to Collect Their Parent's Tax Debt and FBAR Penalties
July 24th, 2020
Tax debt is notoriously hard to get rid of. The IRS is a zealous creditor with some tax liabilities even surviving bankruptcy. If you owe significant unpaid taxes, the IRS has a variety of ways to collect on that debt. But could those collections aff…
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Categories: IRS Debt Collection
Married Spouses’ Willful FBAR Penalties Are Double, Treasury Department Says
July 10th, 2020
Most married couples manage their money together. They may hold accounts jointly, or each keep their names on their own assets. But according to a recent complaint filed by the United States Secretary of Treasury, even keeping accounts in one spouse…
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IRS Says Widow Committed Willful FBAR Violations Just by Signing Tax Returns
June 24th, 2020
In many relationships, one spouse may handle all the financial affairs of the household. But what happens when that spouse dies? Can a widow (or widower) be assessed a willful FBAR penalty just for signing tax returns prepared by her spouse and a CPA…
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How Courts Calculate Willful FBAR Penalties
June 10th, 2020
If things have gone wrong and you find yourself and your overseas bank accounts the subject of an IRS audit, you may feel like you are preparing for the worst. But what is the worst? How do the IRS and tax courts calculate willful FBAR penalties when…
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Is a Retirement Account Early Withdrawal Tax Penalty Unconstitutional Discrimination?
May 26th, 2020
What’s the difference between a tax-advantaged retirement account and a regular savings account? About 10% if you take a withdrawal too early. But could that early withdrawal tax penalty be unconstitutional age or disability discrimination? The U.S…
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Court Says Taxpayer Could Not Redeem Real Estate Sold Under Tax Lien
May 11th, 2020
Taxpayers who sink their assets into real estate rather than pay their taxes can find themselves facing sheriff sales when the IRS comes to collect what is owed. One taxpayer tried to use a Utah law to redeem real estate sold under a tax lien, but th…
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U.S. Tax Court Suspends IRS Tax Levy During Tax Appeal
April 24th, 2020
Can the IRS continue to seize your income even if you are appealing a tax determination? Can you stop an IRS tax levy if you believe there was an error, or do you simply have to pay now and sue later? The U.S. Tax Court provided a helpful summary of…
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Categories: IRS Debt Collection
Bankruptcy Court Lifts Stay for IRS to Collect Tax Lien on Retiree’s Pension
April 10th, 2020
Bankruptcy attorneys often advise clients that filing their bankruptcy petition will put an end to collections efforts by creditors. However, tax attorneys know that the IRS does not give up so easily. A recent bankruptcy court case shows that an aut…
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IRS Processing Delays Create Trouble for Foreign Trust Beneficiaries
April 7th, 2020
In this digital age, having documents “cross in the mail” is almost obsolete. However, IRS processing delays in reviewing foreign trust beneficiaries’ reasonable cause applications for forgiveness of reporting penalties can mean taxpayers recei…
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Categories: Tax / IRS Penalties
