IRS Voluntary Disclosure Practice and Closing Agreement: Understanding the Basics

The Internal Revenue Service (IRS) Voluntary Disclosure Practice (VDP) is alive and well. Its parameters are set out in Internal Revenue Manual (IRM) provisions dedicated strictly to the VDP. IRM 9.5.11.9.1 Voluntary Disclosure Practice, is available here. Under the VDP, the nature and extent of penalties to be assessed against a taxpayer will, to a … Continue reading IRS Voluntary Disclosure Practice and Closing Agreement: Understanding the Basics →

IRS is Ruthless in Seeking “Willful” FBAR Penalties – But the Court Won’t Have it….

We have another important FBAR case, US v Katholos No17cv531 WDNY Aug 10 2022. Ms Katholos was first introduced to my readers in 2018 (blog post here). An update on Katholos was posted just last week detailing a court’s clarification, perhaps an expansion, of the definition of “financial interest” in an account requiring FBAR reporting. … Continue reading IRS is Ruthless in Seeking “Willful” FBAR Penalties – But the Court Won’t Have it…. →

Mr. FBAR – He Lurks in Every Corner – Katholos Case Expands Meaning of “Financial Interest”

We have another important FBAR case. The case is significant for 2 distinct reasons 1) clarification, and some may say, an ‘expansion’ of the definition of “financial interest” in an account requiring FBAR reporting and 2) a firm demonstration how far the Internal Revenue Service (IRS) will go to assert a civil “willful” FBAR penalty. … Continue reading Mr. FBAR – He Lurks in Every Corner – Katholos Case Expands Meaning of “Financial Interest” →

Are Streamlined Audits Becoming More Common? The Streamlined Submission that went Belly-Up (Part II)

Are "Streamlined" audits on the rise? It appears so. In 2016, two years after the Streamlined Procedures were put into place, then-Acting Assistant Attorney General Caroline Ciraolo (Dept. of Justice) had this to say in an interview: "After seven years of voluntary disclosure programs, nearly 200 criminal prosecutions, and the increased assessment and suits to … Continue reading Are Streamlined Audits Becoming More Common? The Streamlined Submission that went Belly-Up (Part II) →

What Can Happen if Your Streamlined Submission Goes Belly-Up? (Part I)

The IRS Streamlined Procedure, whether the Streamlined Foreign Offshore Procedure (SFOP) or the Streamlined Domestic Offshore Procedure (SDOP) of 2014 is still available for taxpayers, but the Internal Revenue Service (IRS) is apparently closely policing those who enter the program. The IRS is now very carefully vetting the cases coming in. A hallmark of the … Continue reading What Can Happen if Your Streamlined Submission Goes Belly-Up? (Part I) →

FBAR Penalty & the US Supreme Court: If the Penalty is “Per Form”, are “Per Account” Penalty Refunds Possible?

My earlier blog posts discussed the split in the circuit courts whether the FBAR $10,000 civil nonwillful penalty is to be applied on a “per account” rather than “per form” basis. The Fifth and Ninth circuit courts disagree on the statutory interpretation of the Bank Secrecy Act (BSA) (31 U.S.C. § 5321(a)(5)(B)(i)), particularly what constitutes … Continue reading FBAR Penalty & the US Supreme Court: If the Penalty is “Per Form”, are “Per Account” Penalty Refunds Possible? →

Recent FBAR Case: IRS Seeks “Willful” Penalty $8.8M Without Much Regard for the Facts

A very recent FBAR case teaches us a few things. My colleague, attorney John Richardson, noted this after reading the case: "When charities need to raise money they will often have a bake sale or an auction. When the US government wants to raise money it uses an 'FBAR Fundraiser'". Readers, draw your own opinion! … Continue reading Recent FBAR Case: IRS Seeks “Willful” Penalty $8.8M Without Much Regard for the Facts →

FBAR – Fifth Circuit, Non-Willful Penalty Multiplies “Per Account” in Bittner Case

Ka’Ching! It’s a win for the Internal Revenue Service (IRS)! At the end of November, in United States v. Bittner, (No. 20-4059, 5th Cir. 11/30/21), the Fifth Circuit overruled the lower court and held that the FBAR non-willful US$10,000 penalty applies on a per account rather than a per form basis. The taxpayer was hit … Continue reading FBAR – Fifth Circuit, Non-Willful Penalty Multiplies “Per Account” in Bittner Case →

Malta Pension Plan – IRS Knocks It Out.. and Yes, “I Told You So…..”

Just in time for Christmas, we have two big gifts. Both relate to Malta Pension Plan schemes. If you are too busy to read the post because of the Christmas rush, in a nutshell, they've just been knocked out and the Internal Revenue Service (IRS) is hot on the trail for taxpayers who used them! … Continue reading Malta Pension Plan – IRS Knocks It Out.. and Yes, “I Told You So…..” →

IRS Determined to Collect FBAR Penalties – “We Have Ways of Making You Pay” … Even if Your Money is Outside the US

The case of US v Schwarzbaum (decided October 26, 2021), discussed in today’s blog post, serves as a harsh reminder of how far the US government will go to collect FBAR penalties. The importance of posting about this latest development is to underscore how aggressive FBAR penalty collection efforts are now becoming. Of course, this case … Continue reading IRS Determined to Collect FBAR Penalties – “We Have Ways of Making You Pay” … Even if Your Money is Outside the US →