Court Rules that FBAR willful penalty not capped at $100,000: With IRS willful FBAR Penalties reaching upwards of 50% of the maximum value of foreign bank accounts per year (100% cap), it makes sense for a taxpayer to try everything she can to try to reduce those IRS FBAR willful penalties before throwing in the towel.
Court Rules that FBAR willful penalty not capped at $100,000
One strategy taxpayers employed was to argue that the FBAR willful penalty is capped at $100,000 It is essentially, a last-ditch effort type strategy attorneys have been using is that the regulation limiting the annual Willful FBAR penalty to $100,000 is still valid.
While a few taxpayers early-on had some initial success with this strategy, since then it has been a loser.
This strategy did not work for Fariba Ely Cohen to try and thwart massive willful FBAR Penalties for her unreported accounts in Luxembourg.
Even though California Federal court rejected her argument. Cohen still has the right to appeal the decision.
IRS Offshore Compliance with Voluntary Disclosure
It is human nature to want to avoid making a proactive submission to a government agency such as the IRS before the IRS ever discovers the non-compliance. But, typically that is best path forward.
Moreover, if you realize you are out of compliance and begin researching online, you may begin to feel as though it is hopeless. Some of these attorneys and CPAs make it appear that everyone with unreported assets or income is going to be severely penalized and shipped off to prison.
That is simply not the case.
You have options, and depending on the facts and circumstances of your situation, your options may include the streamlined program, reasonable cause, or the delinquency procedures – which may result in significantly reduced fines and penalties (and may even receive a penalty waiver).
Golding & Golding, Board Certified in Tax Law
We have successfully represented clients in more than 1,000 streamlined and voluntary disclosure submissions nationwide and in over 70-different countries.
Golding & Golding is the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants, and Financial Professionals across the globe.