FBAR Investigations and Litigation: Compliance Traps, IRS Guidance, FBAR Defense Strategies, Recent Cases, Penalties

The IRS is aggressively enforcing compliance with U.S. tax rules and foreign accounts compliance. This is particularly true in the case of failure to file a FinCen Form 114 (FBAR), where the IRS has had several high-profile court victories upholding penalties for willful failure to file.

Taxpayers with international tax reporting obligations suffer from rigorous compliance and enforcement efforts and overly complicated rules and regulations. The IRS is increasingly more effective at identifying non compliant taxpayers focusing on (1) reporting issues with respect to foreign accounts, assets, and investments, and (2) foreign income generated from foreign businesses, gifts, inheritances, mutual funds, and other passive investments.

Significant FBAR penalties, in particular, had been a powerful enforcement tool for the IRS. Possessing an in-depth understanding of FBAR filing rules and regulations will assist counsel and tax advisers in helping taxpayers maintain compliance and avoid FBAR investigations that may result in severe civil and criminal penalties.

Listen as our panel explains FBAR filing and reporting requirements, navigating FBAR examination and litigation, the evolution of the "non-willful" standard, and managing administrative appeals, the federal district court, and U.S. Court of Federal Claims litigation.

1. Critical compliance issues and resolution options
2. Navigating the FBAR examination and assessment process and administrative appeals
3. Penalties and FBAR defense strategy
4. Litigation; recent cases and IRS enforcement actions

The panel will review these and other key issues:

• What are the standards for "reasonable cause" abatement?
• What are the critical challenges of FBAR controversies, administrative appeals, the district court, and the court of federal claims litigation?
• Why does the APA provide possible grounds for defending against FBAR penalty assessments that are not available to taxpayers challenging other IRS foreign-related penalties?

Learning Objectives

After completing this course, you will be able to:

• Understand FBAR penalty structures for non-willful and willful failure to file
• Ascertain the standards for "reasonable cause" for abatement
• Identify critical challenges of FBAR controversies, administrative appeals, the district court, and the court of federal claims litigation
• Understand why the APA provides possible grounds for defending against FBAR penalty assessments that are not available to taxpayers challenging other IRS foreign-related penalties

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or public firm experience at mid-level within the organization, preparing complex tax forms and schedules, supervising other attorneys or accountants. Specific knowledge and understanding of foreign asset information reporting requirements, particularly FATCA and FBAR/FinCen 114; familiarity with IRS audit procedures in examining foreign tax reporting, familiarity with voluntary disclosure programs.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).