Wednesday, July 18, 2018

Another District Court Limits IRS Authority for FBAR Willful Penalty to $100,000 (7/18/18)

In United States v. Wadhan (D. Colo. Dkt 17-CV-1287 Dkt Entry 55), here, the Court held that the IRS's discretion to impose FBAR maximum willful penalties is limited to the $100,000 amount in there regulations. The bottom line holding is the same as the Court in United States v. Colliot (W.D. Texas No. AU-16-CA-01281-SS), here.  I discussed Colliot in District Court Caps IRS Authority to Assess Willful FBAR Penalty at $100,000 (Federal Tax Crimes Blog 5/19/18), here.

According to the opinion, "[F]or three violations, the IRS assessed penalties of $1,108,645.41 for 2008, $599,234.54 for 2009, and $599,234.54 for 2010."  Under the opinion, the FBAR willful penalty is limited to a maximum of $100,000 for each of the three years.

The docket entries in Wadhan as of today are here.

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