» Tax News
Judge Cancels $3.2 Million in Foreign Trust Reporting Penalties
December 11th, 2020
If you are the owner or beneficiary of a foreign trust, you must disclose that asset, and any distributions you receive from it to the government every year. Failure to comply with the IRS reporting requirements can add up to steep penalties, and eve…
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Categories: Tax / IRS Penalties
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Fourth Circuit Adopts “Recklessness” Standard For Willful FBAR Violation and Rejects $100,000 Willfulness Penalty Cap Argument.
November 24th, 2020
If you decide to take advantage of more favorable terms and interest rates in foreign financial accounts, you may not realize how significantly those investment choices may complicate your tax filing requirements. Failing to file annual FBAR reports…
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When Do You Have a Financial Interest in Foreign Bank Accounts for FBAR Filings?
November 11th, 2020
If you have a complicated banking situation, including business entities and shared accounts with non-U.S. taxpayers, it may not be clear when you have a financial interest in foreign bank accounts that requires disclosure under the IRS regulations r…
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Can You Plead the Fifth Amendment on FBAR Filings?
October 26th, 2020
After spending years trying to hide money in a “secret account” in Switzerland, one couple was assessed civil willful FBAR penalties after they filed a report that simply said “Fifth Amendment”. The tactic raises the question, can you plead t…
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What Are the FBAR Reporting Requirements for U.S. Citizens Living Overseas?
October 12th, 2020
If you are an American citizen whose work, family, or lifestyle have sent you to live overseas, you may wonder whether you are still required to file U.S. tax returns or disclose your foreign assets. A recent complaint filed by the IRS in the United…
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Categories: FBAR
International Spouse Challenges $5 Million FBAR Penalty
September 24th, 2020
When international spouses live, work, and pay taxes in multiple countries, it can create difficulties knowing who needs to disclose what accounts to the IRS. One U.S. taxpayer recently filed suit against the IRS over a willful FBAR penalty of more t…
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Do You Have to Report Your Business’s Foreign Financial Accounts on Your FBAR?
September 10th, 2020
If you are operating a business with accounts overseas, it may make sense to maintain foreign financial accounts in those countries to make doing business easier. But as a business owner, choosing to open bank accounts in other countries may create t…
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Is a Disability Discrimination Award Taxable as Income?
August 24th, 2020
By the time a wrongfully terminated employee receives their disability discrimination award after filing an employment discrimination lawsuit, much of that money is already earmarked for lawyers, medical providers, and other bills that have come due.…
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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
