Tuesday, June 21, 2022

SC To Hear FBAR Penalty Limit Case - $10,000 Per Year or Per Account?

On April 5, 2022 we posted 3 Groups Urge Supreme Court To Review Non-Willful FBAR Penalty, where we discussed that whether a foreign bank account reporting penalty is assessed Per Unreported Account or Per Unfiled Form should be determined by the U.S. Supreme Court, tax and business groups said, arguing a circuit split on the issue warrants high court intervention.

In amicus briefs filed on April 1, 2022, the U.S. Chamber of Commerce, Center for Taxpayer Rights and American College of Tax Counsel told the Supreme Court it should resolve the divergent findings by two appeals courts on the proper application of the penalty for a person or business' nonwillful failure to disclose foreign accounts.

The U.S. Supreme Court decided on June 21, 2022 to hear a dispute over the maximum penalty for failing to disclose foreign bank accounts to the IRS in a case that could resolve the limits of a $10,000 penalty for undeclared accounts. The case is Alexandru Bittner v. U.S., case number 21-1195, in the U.S. Supreme Court.

The justices will weigh in on the dispute between Alexandru Bittner and the federal government, who disagree over the proper application of the $10,000 penalty for a nonwillful failure to disclose foreign bank accounts, according to an order list

While the Ninth Circuit has decided that the penalty for a nonwillful failure to disclose foreign accounts is assessed on a per-form basis, the Fifth Circuit found in Bittner's case that the penalty is imposed for each unreported account.

Have an FBAR Penalty Problem?  

 Contact the Tax Lawyers at 
Marini& Associates, P.A. 
for a FREE Tax Consultation at: 
www.TaxAid.com or www.OVDPLaw.com 
Toll Free at 888-8TaxAid (888) 882-9243

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