Back to School: FBAR Penalties and a Lesson in Statutory Construction

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There is a disconnect between the statute and the regulation that impose penalties for violating FBAR filing requirements. Our International Tax Group covers the bases of the three court cases that have the IRS batting just 1 for 3.

  • The 2004 statute can impose a penalty greater than $100,000
  • The regulation, which wasn’t updated, limits penalties to $100,000
  • Two courts favor the regulation; one the statute

Read the full advisory here.