2018 – 12/10 A U.S. District court has held that the monetary limit on the penalty for willfully failing to file a Report of Foreign Bank and Financial Accounts (FBAR) is an annual one. The maximum penalty for a willful violation is the greater of $100,000 or 50% of the balance due. The taxpayer in this case argued that the IRS assessed penalties that exceeded the $100,000 penalty cap. However, the court approved the IRS calculation. An FBAR is required of those who have a financial interest in or signature authority over a foreign financial account. (Shinday, DC CA, 12/4/18)
