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Fourth Circuit Adopts “Recklessness” Standard For Willful FBAR Violation and Rejects $100,000 Willfulness Penalty Cap Argument.

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… Read More
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foreign currency

When Do You Have a Financial Interest in Foreign Bank Accounts for FBAR Filings?

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… Read More
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Fifth Amendment papers

Can You Plead the Fifth Amendment on FBAR Filings?

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… Read More
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International Spouse Challenges $5 Million FBAR Penalty

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… Read More
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foreign money

Do You Have to Report Your Business’s Foreign Financial Accounts on Your FBAR?

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… Read More
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Gavel and Themis statue in the court library.

Non-Willful FBAR Penalties Capped Per Year, Not Account, Court Says

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… Read More
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Scales of Justice weighing cash

Married Spouses’ Willful FBAR Penalties Are Double, Treasury Department Says

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… Read More
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Woman signing tax forms

IRS Says Widow Committed Willful FBAR Violations Just by Signing Tax Returns

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… Read More
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How Courts Calculate Will…

How Courts Calculate Willful FBAR Penalties

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… Read More
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Is a Retirement Account E…

Is a Retirement Account Early Withdrawal Tax Penalty Unconstitutional Discrimination?

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… Read More
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