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Fifth Circuit Widens Split Over Non-Willful FBAR Penalties
December 27th, 2021
Is mistakenly failing to file a Report of Foreign Financial Accounts (FBAR) one violation of the Bank Secrecy Act, or several? Whether non-willful FBAR penalties apply per form or per account has become the next big debate among tax attorneys and fed…
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Courts Split Over Finding Multiple FBAR Violations In One Tax Year
December 7th, 2021
When U.S. taxpayers do banking overseas, they don’t often choose an investment strategy based on the number of accounts they will hold. However, the IRS maintains that it can assess penalties for multiple FBAR violations in one tax year. That could…
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Can an Informal Trust Shield a Trustee from FBAR Penalties?
November 16th, 2021
When family money is passed down through the generations, it isn’t always clear who owns the accounts, or who is required to disclose them to the IRS. A recent case from the Federal Court of Claims considers whether an undocumented, informal trust…
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Will Tax Prep Software Prevent Willful FBAR Penalties?
November 9th, 2021
Every year, millions of Americans file their taxes using TurboTax or another commercial tax prep software. The hope is that these programs will make sure their taxes are done correctly and avoid penalties or even an IRS audit. However, one recent cas…
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Who is Entitled to Innocent Spouse Relief?
October 13th, 2021
Spouses who choose to file their tax returns jointly depend on one another to truthfully report their income and comply with the tax law. When a husband or wife falls short on that obligation, their spouse may find themselves facing IRS collections.…
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Do Plaintiffs Have to Pay Income Tax on Emotional Distress Awards?
October 11th, 2021
If you represent plaintiffs in civil lawsuits, you often must negotiate the tax withholdings on their settlement awards. It is important to recognize how different legal claims are taxed and to draft your settlement agreements appropriately. Otherwis…
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How Does the IRS Prove Civil Tax Fraud in Court?
September 27th, 2021
No one wants to be the subject of an IRS civil tax fraud investigation. But a tax audit is only the beginning of the process. When a taxpayer challenges the IRS’s assessment, the government will have to prove civil tax fraud in court. Here’s what…
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Update: Sole Owner / Beneficiaries of Foreign Trusts Can Face Higher Penalties, Court Says
September 13th, 2021
A trust can be a useful wealth management tool to reduce tax obligations, and ensure beneficiaries receive their intended assets. However, when that trust is held overseas, the IRS requires extra tax returns from both owners and beneficiaries to make…
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Can the IRS Collect Non-Willful FBAR Penalties from a Deceased Taxpayer’s Estate?
August 23rd, 2021
There’s an old saying that nothing is inevitable but death and taxes. But in a fight between the two, which one wins? If a person dies before paying off an assessment, can the IRS collect non-willful FBAR penalties from the deceased taxpayer’s es…
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Appeals Judges Disagree Over Maximum Willful FBAR Penalty
August 11th, 2021
The question of just how expensive a willful penalty for failing to report foreign financial accounts has been making its way through the federal court systems. Now, the Second Circuit has issued a split opinion that shows just how divided judges are…
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