Surprising FBAR Cases: A Mixed Bag for Taxpayers Facing Foreign Account Penalties




The tax press has focused recently on captive insurance, conservation easements, Employee Retention Credits, and other “hot” topics. However, international tax enforcement in general, and big penalties for unfiled FBARs in particular, are still key issues. Several cases, largely unnoticed, have held that the IRS can extend the period for assessing FBAR penalties, even though the initial deadline expired. Another case ruled that FBAR penalties are “fines” for constitutional purposes, such that courts can reduce them if they are “excessive.” This article examines disparate rules about extensions of assessment-periods, relevant IRS guidance, and new cases centered on these critical topics.

Read the full article here.

About Hale E. Sheppard
HALE E. SHEPPARD, Esq. (B.S., M.A., J.D., LL.M., LL.M.T.) is a partner in the Tax Controversy Section of Chamberlain Hrdlicka.  He defends clients in tax audits, tax appeals, and Tax Court litigation, covering both domestic and international issues.

 


Popular posts from this blog

40 Important Events in the First Five Years of the ERC

Image
Five years have passed since Congress introduced the Employee Retention Credit (“ERC”) in 2020, a remarkably long list of things have happened since then, and most people have trouble keeping up.   Failure to understand the four ERC laws, evolving IRS guidance, court cases, and related matters could result in financial tragedy for many companies.   Mindful of this reality, this article, which builds on more than two dozen others by the same author, provides legislative background and then explores 40 important events that have occurred during the first half-decade. Read the full article here. About Hale E. Sheppard HALE E. SHEPPARD, Esq. (B.S., M.A., J.D., LL.M., LL.M.T.)  is a partner at Eversheds Sutherland.  He defends clients in tax audits, tax appeals, and Tax Court litigation, covering both domestic and international issues.
Read more

The Resurgence of Qualified Opportunity Zone Issues: Recent Tax, Enforcement, and Legislative Matters

Image
Not long ago, it was hard to go anywhere without hearing about Opportunity Zones. Time passed, and attention waned. That will soon change, though. Why? Some taxpayers recently maximized their tax-reduction abilities, the chance to defer taxes on prior capital gains will end soon, permanent exclusion of certain passive income from taxes will be accessible in the near future, the IRS is focusing on two groups heavily involved in Opportunity Zones (i.e., high-income individuals and large partnerships), and Congress is considering changes to the rules in 2025. This article, which expands on two earlier ones, addresses these key issues and others. Read the full article here. About Hale E. Sheppard HALE E. SHEPPARD, Esq. (B.S., M.A., J.D., LL.M., LL.M.T.)  is a partner at Eversheds Sutherland.  He defends clients in tax audits, tax appeals, and Tax Court litigation, covering both domestic and international issues.
Read more

The Limited Partner Exception to SECA Taxes: Three Tax Court Decisions and Future Clashes

Image
  Ambiguity about when distributions to “limited partners” are exempt from self-employment taxes has existed for five decades. This vagueness has led to many disputes, including numerous cases now winding their way through the courts. The Tax Court has made some significant rulings already, but many of the key issues are far from resolved. This article, the latest in a series, summarizes the relevant law and regulations, describes the only precedential case on the books for many years, explains the Compliance Campaign launched by the IRS, analyzes three recent Tax Court decisions, and identifies several additional cases on the way. Read the full article here. About Hale E. Sheppard HALE E. SHEPPARD, Esq. (B.S., M.A., J.D., LL.M., LL.M.T.)  is a partner at Eversheds Sutherland.  He defends clients in tax audits, tax appeals, and Tax Court litigation, covering both domestic and international issues.
Read more