US Courts Reject Implementation of Unlimited Fines for FBAR Late Payments

A US District Court has held that going forward, US taxpayers cannot be fined more than USD $100,000 for the wilful non-filing of a Foreign Bank Account Report (also known as FBAR), regardless of how much money being held in the bank account of the undisclosed individual.

The decision in US v Colliot overrules a US statute allowing the Internal Revenue Service (IRS) to charge penalties of up to 50% of the maximum undisclosed amount and could “fundamentally affect the landscape for future cases of evasion, with a huge number of potential consequences” US tax enforcement experts reassure.