IRS Announces New Rules for FBAR Penalties

- By : Parag Patel

…examination; FBAR issue workpapers; the FBAR 30-Day Letter (Letter 3709 for pre-assessment; Letter 3708 for post-assessment); the Taxpayer’s protest; the representatives FBAR/Title 31 Power of Attorney Form 2848, if applicable;…

New FinCEN Form 114 (FBAR) Filing Rules Announced

- By : Parag Patel

…required to establish the profile of each FBAR filer. They were also used as the means to electronically sign the submitted FBARs. This required an FBAR filer to provide the…

Correcting Common FBAR Errors

- By : Parag Patel

…Amended FBAR According to the FBAR instructions, a person who previously filed an FBAR but mistakenly provided incomplete or inaccurate information on the form is required to file an amended…

2016 US Dept of Justice (DOJ) Tax Division: FBAR penalty collection cases

- By : Parag Patel

…unusual FBAR penalty collection is required. Unlike a tax or penalty assessed in the Tax Code, which is subject to broad administrative collection remedies of liens and levies, the FBAR

New Court Ruling: FBAR penalties applied per form and not per account

- By : Parag Patel

The FBAR rules require the filing of a FinCEN Report 114, Report of Foreign Bank and Financial Accounts (FBAR) to report for accounts of U.S. persons aggregating $10,000 or more….

New Favorable Court Decision: One penalty (not multiple) applies for late FBAR filing

- By : Parag Patel

…interest in, or signature authority over, foreign financial accounts with an aggregate balance of $10,000 or higher must file an FBAR. The FBAR has no income tax implications, it is…

New Court Case Limits the Reasonable cause exception to FBAR penalties

- By : Parag Patel

…program or file the missing FBAR forms. The IRS issued non-willful FBAR penalties against both Larry and Linda for four years, a total of $80,000.00.   Is a CPA’s Advice…

New FBAR Deadline applies to 2016 Tax Year Onwards

- By : Parag Patel

…take effect until the FBAR for the 2016 year is due in 2017. Hence, the 2015 FBAR is still due on June 30, 2016. However, the 2016 FBAR and subsequent…

New FBAR Court Case Makes it Easier for Taxpayers to be Deemed Willful

- By : Parag Patel

…inflation) or 50% of the balance in the unreported financial account. A recent court case impacts the FBAR Burden of Proof. What is the FBAR Burden of Proof? When we…

OVDI: Requesting issuance of a FBAR warning letter instead of penalties

- By : Parag Patel

…In doing so we have been advocating for the IRS Agent to issue the FBAR warning letter instead of penalties. IRM 4.26.16.4 (07-01-2008) FBAR Penalties The IRS has been delegated…

New FBAR Deadlines and Penalty Relief available

- By : Parag Patel

…was due to FinCEN by June 30, 2015. In addition, the June 30 deadline for FBARs for such years cannot normally be extended. New FBAR reporting guidelines and New due…

Federal District Court Holds that FBAR Penalties in Excess of $100,000 is Unlawful

- By : Parag Patel

…penalties. The IRS assessed penalties for willful failure to timely file FBARs from 2007 to 2010. The individual had four separate FBAR violations in 2007, and the associated penalties totaled…

Caution: Increased FBAR Enforcement

- By : Parag Patel

…of the evidence that Toth’s failure to file FBAR was willful.  In United States v. DeMauro (D. N.H. Dkt. 17-cv-640-JL 8/28/20 here), the Court approved of the government’s assessed FBAR willful penalty. …

New IRS Guidelines for Willful FBAR violations

- By : Parag Patel

Last week, the Internal Revenue Service released interim guidance (SBSE-04-0515-0025) on foreign bank account report (FBAR) penalties to improve the administration of the FBAR compliance program. The guidance contains amendments…

Beware: IRS Reminds Taxpayers of FBAR Deadline

- By : Parag Patel

FBAR requirement. The FBAR filing requirement is not part of filing a tax return. The FBAR Form 114 is filed separately and directly with FinCEN. FBAR filings have surged in…

Opting-out of the Offshore Voluntary Disclosure Initiative: FBAR Penalty Mitigation Guidelines

- By : Parag Patel

…those who do not know about the Normal FBAR Penalty Mitigation, you should see http://www.irs.gov/irm/part4/irm_04-026-016.html#d0e1317. The Normal FBAR Penalty Mitigation are also provided below. Normal FBAR Penalty Mitigation Guidelines for…

New Much-Needed Guidance for Non-Willful FBAR violations

- By : Parag Patel

Last week, the Internal Revenue Service released interim guidance (SBSE-04-0515-0025) on foreign bank account report (FBAR) (also known as FinCen 114) penalties to improve the administration of the FBAR compliance…

New FBAR FIling Deadline Law Signed

- By : Parag Patel

…15th, if this is the first time the FBAR was due. High penalties apply for failure to file FBARs. However, the IRS already has discretion to waive FBAR filing penalties….

Helpful Non-willful FBAR penalty case decided by court

- By : Parag Patel

…at some non-willful FBAR penalty litigation. The US district court has essentially dismissed a taxpayer’s challenges to his penalty for failing to file FBARs (Report of Foreign Bank and Financial…

Willful FBAR Penalties

- By : Parag Patel

…the IRS each year by filing a Report of Foreign Bank and Financial Accounts (FBAR). Taxpayers must file the FBAR annually and the last day to timely file is at…

FBAR Reforms Recommended

- By : Parag Patel

…filing of FBAR extensions through their products; FinCEN’s final regulations include a provision to grant an automatic extension until June 15 to FBAR filers located overseas or who maintain their…

How to Defend Against FBAR Penalties

- By : Parag Patel

…be income tax return audits seeking the unreported foreign income. These audits will likely identify the non-filing of Report of Foreign Bank and Financial Accounts, TD F 90.22-1 (FBAR) forms….

US Court finds non-willful FBAR penalty not limited to $10,000 per year

- By : Parag Patel

…the penalty should not exceed $10,000 per FBAR, irrespective of the number of bank accounts required to have been listed on the FBAR. The court viewed Section 5321 as “somewhat…

Foreign bank account reports (FBARs) and the 2011 Offshore Voluntary Disclosure Initiative (2011 OVDI)

- By : Parag Patel

Foreign bank account reports (FBARs) for 2010 are due on June 30, 2011 (and no extension is available). Recent guidance provides insight into who is required to file an FBAR

Some FBAR Deadlines Extended

- By : Parag Patel

Last week the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) again extended the deadline for certain financial professionals to file foreign bank accounting reporting forms known as FBARs. In FinCEN…

FBAR Deadline Automatic Extension

- By : Parag Patel

…year, each annual FBAR must be filed with FInCen by April 15th. This change to an April 15th FBAR filing date was designed to match the FBAR filing date with…

All the Many FBAR Late Filing Procedures

- By : Parag Patel

…become noncompliant and delinquent. However there are a number of different delinquent FBAR late-filing procedures U.S. taxpayers can go through to become compliant. Delinquent FBAR Submission Procedures or DFSP A…

Unfiled FBAR Penalties Survive Death

- By : Parag Patel

…determined that the FBAR civil nonwillful penalty was remedial, which survives death and becomes an estate liability. Many cases in the past have held that the FBAR willful penalty, which…

Argue for No Penalty and a Warning Letter for FBAR Violations

- By : Parag Patel

…account is inherited and how the taxpayer treated other inherited accounts. Under IRM 4.26.16.4 (FBAR Penalties) (07-01-2008) whenever there is an FBARviolation, the examiner will either issue the FBAR warning…

Top 4 Exceptions to FBAR Filing Requirement

- By : Parag Patel

FBARs are due this week (again). Below are the top 4 exceptions we often see for the FBAR filing requirement. Certain Accounts Jointly Owned by Spouses – the spouse of…