Example of How the IRS Issues an FBAR Penalty Per Account
FBAR Penalty Per Account: One common misconception about the FBAR Penalty, is that it is limited to either one-year, or one account. but that is not true. While the FBAR penalty per account are not the most common penalties issued, the IRS is within its right to issue these types of penalties.
What is an FBAR Penalty, Per Account?
There are essentially 4-levels to the FBAR Penalty. As an aside, the FBAR penalty per account generally deals with non-willful penalties. The willful FBAR penalties can be significantly worth, depending on the value of the accounts. The four (4) types of non-willful FBAR penalties, include:
- Warning letter in lieu of penalties
- A $10,000 penalty in total
- A $10,000 penalty, per year
- A $10,000 per account, per year penalty.
*The $10,000 is adjusted per inflation, so currently the penalty is closer to $13,000 but most guides still refer to “$10,000.” so we will too.
Example of How it Works
David is from Taiwan. David was required to file the FBAR, but did not file. The IRS determines he was non-willful. He has five (5) accounts in Taiwan. Each Account has a $500,000 maximum balance.
- Each account is subject to the penalty: $10,000 per account for 5 accounts = $50,000
- The Statute of Limitations = 6 Years
Total Penalty: $50,000 per year for 6 years = $300,000
Recent Case: U.S. v. Boyd
FBAR Reporting Amnesty – Golding & Golding (Board-Certified)
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We have successfully represented clients in more than 1,000 streamlined and voluntary offshore disclosure submissions nationwide and in over 70-different countries. We have represented thousands of individuals and businesses with international tax problems.
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We are the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants and Financial Professionals worldwide.
Less than 1% of Tax Attorneys Nationwide Are Certified Specialists
Sean M. Golding is one of less than 350 Attorneys (out of more than 200,000 practicing California Attorneys) to earn the Certified Tax Law Specialist credential. The credential is awarded to less than 1% of Attorneys.
Recent Golding & Golding Case Highlights
- We represented a client in an 8-figure disclosure that spanned 7 countries.
- We represented a high-net-worth client to facilitate a complex expatriation with offshore disclosure.
- We represented an overseas family with bringing multiple businesses & personal investments into U.S. tax and offshore compliance.
- We took over a case from a small firm that unsuccessfully submitted multiple clients to IRS Offshore Disclosure.
- We successfully completed several recent disclosures for clients with assets ranging from $50,000 – $7,000,000+.
How to Hire Experienced FBAR Counsel?
Generally, experienced attorneys in this field will have the following credentials/experience:
- Board Certified Tax Law Specialist credential
- Master’s of Tax Law (LL.M.)
- Dually Licensed as an EA (Enrolled Agent) or CPA
- 20-years experience as a practicing attorney
- Extensive litigation, high-stakes audit and trial experience
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Golding & Golding specializes in FBAR and FATCA. Contact our firm today for assistance with getting compliant.
Sean holds a Master's in Tax Law from one of the top Tax LL.M. programs in the country at the University of Denver. He has also earned the prestigious IRS Enrolled Agent credential. Mr. Golding's articles have been referenced in such publications as the Washington Post, Forbes, Nolo, and various Law Journals nationwide.