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.
Jack Townsend offers this blog on Federal Tax Crimes principally for tax professionals and tax students. It is not directed to lay readers -- such as persons who are potentially subject to U.S. civil and criminal tax or related consequences. LAY READERS SHOULD READ THE PAGE IN THE RIGHT HAND COLUMN TITLE "INTENDED AUDIENCE FOR BLOG; CAUTIONARY NOTE TO LAY READERS." Thank you.
Wednesday, July 18, 2018
Another District Court Limits IRS Authority for FBAR Willful Penalty to $100,000 (7/18/18)
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