From the Tax Law Offices of David W. Klasing

IRVINE, Calif., Sept. 29, 2020 /PRNewswire/ — U.S. citizens with overseas assets or offshore bank or financial accounts are required to report these holdings to the IRS each year on a “Report of Foreign Bank and Financial Accounts,” or “FBAR.” Failure to do so can result in fines that will be enhanced if your actions are deemed to have been willful. Aside from this, taxpayers who fail to file FBAR can also be subject to the “fraudulent failure to file” penalty relating to your overall return, but only if their actions were sufficiently deliberate. Since the standards for both of these actions seem essentially the same- the deliberate attempt to avoid tax liability by failing to file documents- you might think that if a court were to sustain the application of one of these penalties, they would sustain the other.  

Logo (PRNewsfoto/Tax Law Offices of David W Klas)
Logo (PRNewsfoto/Tax Law Offices of David W Klas)

In

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