Tag: Foreign Penalties

Do FBAR Penalties Die With the Taxpayer?

When someone has an undisclosed foreign bank account that the government has not yet assessed penalties for and they die, can the government still pursue the penalties? The answer hinges on a fundamental legal classification that courts are actively debating—are FBAR penalties primarily punitive fines or remedial damages? If FBAR penalties are primarily punitive, they… Continue reading Do FBAR Penalties Die With the Taxpayer?

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March 16, 2025
FBAR Penalties Are Unconstitutionally Excessive

Most tax penalties follow a simple logic. The bigger the tax problem, the bigger the penalty. For example, the civil fraud penalty is one of the most severe penalties in our tax code. This makes sense as fraud is the most severe thing that one can do wrong when it comes to taxes. The civil… Continue reading FBAR Penalties Are Unconstitutionally Excessive

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January 26, 2025
IRS Cannot Assess Foreign Information Return Penalties

Many businesses today have some international transactions. Many U.S. businesses even have operations in foreign countries–which may include ownership of entities, operations, or just sales. Our tax laws include several provisions that require U.S. taxpayers to report most of these foreign business interests and activities. These filings are mostly made by filing various information returns.… Continue reading IRS Cannot Assess Foreign Information Return Penalties

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December 2, 2024
No Collection Rights for IRS-Assessed FBAR Penalties

The IRS’s historical abuses led Congress to create specific taxpayer rights, including rights stemming from collection due process (“CDP”) hearings. These administrative hearings are intended to pause IRS collection actions while the IRS Office of Appeals considers whether the collection is both lawful and warranted. One might assume these rights extend to any liability assessed… Continue reading No Collection Rights for IRS-Assessed FBAR Penalties

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October 27, 2024
Court Says IRS Can Assess Form 5471 Penalties

Our federal tax system is code-based. This means that most of what the law is can be found in statutes. The premise is that one can read the statutes and get a general idea of what the law is. This is why when it comes to tax law, each word matters. Adding or removing a… Continue reading Court Says IRS Can Assess Form 5471 Penalties

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May 12, 2024
The Evolution of Foreign Account Tax Reporting

The IRS and Treasury face a number of challenges in administering our tax and financial systems. This includes challenges presented by foreign transactions by U.S. citizens and residents. In recent years, high-profile cases involving Americans using offshore accounts to evade taxes have prompted the U.S. government to crack down on tax evasion and make it… Continue reading The Evolution of Foreign Account Tax Reporting

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July 9, 2023