From the Tax Law Offices of David W. Klasing - Federal Court holds: IRS Foreign Bank Account Reporting Penalties Can Now Exceed the Regulatory Cap - Yahoo Finance

IRVINE, Calif., Nov. 16, 2021 /PRNewswire/ -- The IRS has gotten into the habit of assessing and enforcing harsh Foreign Bank Account Reporting "FBAR" penalties in the recent past. But statutory guidelines clash on how much is permissible to assess as a penalty in a given case. It is reasonable to be confused about what penalties are allowable under the law, as the issue had to go all the way up to the Second Circuit to be decided.

In short, the IRS can enforce FBAR penalties that exceed the regulatory cap. In Kahn, the Court found that the old maximum cap on FBAR penalties was no longer valid, as it had been superseded by a more recent amendment to the original statute. This controversial decision opens the door for extreme penalties for FBAR violations which taxpayers, or their advisors, might not have been aware existed.

The best action you can take to avoid facing these extreme penalties is to contact the Tax Law Offices of David W. Klasing today. Our dual Licensed International Tax Attorneys and CPAs have tons of experience battling the IRS on behalf of our clients over domestic and international tax issues. If you are concerned about how developments in the area of FBAR penalties may affect your offshore assets, call us today at (800) 681-1295 or schedule online here.

Note: As long as a taxpayer that has willfully committed tax crimes (potentially including non-filed foreign information returns coupled with affirmative evasion of U.S. income tax on offshore income) self-reports the tax fraud (including a pattern of non-filed returns) through a domestic or offshore voluntary disclosure before the IRS has started an audit or criminal tax investigation / prosecution, the taxpayer can ordinarily be successfully brought back into tax compliance and receive a nearly guaranteed pass on criminal tax prosecution and simultaneously often receive a break on the civil penalties that would otherwise apply.

It is imperative that you hire an experienced and reputable criminal tax defense attorney to take you through the voluntary disclosure process. Only an Attorney has the Attorney Client Privilege and Work Product Privileges that will prevent the very professional that you hire from being potentially being forced to become a witness against you, especially where they prepared the returns that need to be amended, in a subsequent criminal tax audit, investigation or prosecution.

source: https://finance.yahoo.com/news/tax-law-offices-david-w-113700135.html

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