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International Reporting Penalties

In FBAR, Fines, International Tax, Penalties, Uncategorized by Ryan DeanLeave a Comment

Taxpayers with interests in foreign financial assets, financial accounts, and/or foreign trusts may have certain tax reporting obligations with the IRS.  For example, taxpayers with a financial interest in or signature authority over foreign financial accounts with an aggregate value of over $10,000 at any time during the calendar year must file a Report of Foreign Bank and Financial Account …

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Where Is the Limit on Penalties for Willful FBAR Violations?

In Bank Fraud, Evasion, FBAR, Fines, Fraud, International Tax, Uncategorized by Ryan DeanLeave a Comment

A recent decision of the United States Court of Appeals, Federal Circuit holds that the pre-2004 regulation limiting willful FBAR penalties to a maximum of $100,000 is notapplicable.  As many tax practitioners know, 31 U.S.C. § 5314(a) requires taxpayers who have accounts with foreign financial institutions, specifically any person with a financial interest in or signature authority over foreign financial …

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Fines and Penalties and Payments, Oh My! — The New Section 162(f)

In Fines by freemanlawdevLeave a Comment

Section 162 of the Internal Revenue Code outlines trade or business expenses that may be deductible over the course of a taxable year. In particular, before recent tax reform, Section 162(f) foreclosed the possibility of deducting any “fine or similar penalty” paid to the government for violation of any law. Regulations and case law provided some clarification of the scope …