An Overview of 2022 FBAR Issues: Filing Standards, Willfulness, and Handling Examinations
Author: Patrick McCormick
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
In the foreign information reporting context, arguably no form creates as much consternation in the context of penalty exposure as the Foreign Bank Account Report (better known as the FBAR). Statutorily, willful failures to file FBARs create massive penalty exposure: the greater of $100,000 or 50% of the balance of unreported accounts for the year in question (with a six-year civil statute of limitations). In the FBAR penalty context, the primary focus is typically given to the interpretation of the "willful" standard and how it connects to maximum penalty exposure.
Publication Date: November 2022
Topics Covered
- FBAR Overview
- FBAR Penalties
- FBAR Case Law
- FBAR Penalty Enforcement
- Retroactive Disclosure Options
Learning Objectives
- Identify the general reporting requirements on the FBAR
- Recognize how penalty standards are interpreted and applied
- Recognize how FBAR penalties are collected, and the limitations in comparison with traditional Title 26 assessment collection
- Identify under what Title of the Code FBAR is required
- Identify the optimal individual-level penalty
- Identify up to what amount per account per year a taxpayer can be penalized for non-willful penalties
- Identify what has arguably been the most prominent FBAR case
- Identify the year the Voluntary Disclosure Program was altered to incorporate disclosures regarding foreign failures
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
