International Financial Law Prof Blog

Editor: William Byrnes
Texas A&M University
School of Law

Thursday, May 24, 2018

IRS' Confiscatory Percentage Based FBAR Penalties Ruled Illegal By Court

Jack Townshend analyzes the following case

In United States v. Colliot (W.D. Texas No. AU-16-CA-01281-SS), a case brought by the U.S. to obtain judgment on an FBAR willful penalty, the Court granted Colliot's motion for summary judgment, holding that the IRS cannot assess a willful penalty in excess of $100,000 despite the statute allowing a penalty assessment of the higher of $100,000 or 50% of the maximum amount in the unreported foreign account(s).  The order granting summary judgment is here.  This is a major holding which will surely follow, could dramatically affect the landscape for cases in the pipeline until the IRS acts to change the regulations landscape on which the decision was based.

Read his analysis at Federal Tax Crimes blog.

https://lawprofessors.typepad.com/intfinlaw/2018/05/irs-confiscatory-percentage-based-fbar-penalties-ruled-illegal-by-court.html

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