A taxpayer with a foreign account worth more than $10,000 in the preceding year must report the account and file a “Report of Foreign Bank and Financial Accounts (FBAR).
November 13, 2020
One U.S. citizen who had filed FBARs in prior years, failed to report two foreign accounts he held in 2006 to 2009. For those years, he falsely stated on his tax returns that he had no foreign accounts. FBAR penalties were assessed but unpaid.
After he died, his estate also failed to pay the penalties. His prior FBAR filing and his false statements in 2006 to 2009 led a U.S. District Court to deem the failure to file “willful.” The court assessed FBAR penalties of $6.4 million against the estate. (Danielson, DC FL, 10/6/20)