At the recent 34th annual National Institute on Criminal Tax, the Department of Justice (DOJ) announced that it intended to impose stricter sentences in Foreign Bank Account Report (FBAR) cases. Under these new rules, violators could be subjected to longer prison terms.
Who Is Required to File the FBAR?
The FBAR must be filed by anyone who has a foreign bank account with a balance that reaches $10,000 or more at any time during the year. Common FBAR violations include:
- Failure to disclose all foreign accounts;
- Neglecting to reveal the full value of all foreign accounts; or
- Avoiding filing the required form at all.
Stricter Sentences, More Jail Time
In previous cases, violators have been fined the amount the IRS was unable to collect due to the taxpayer’s willful ignorance of the law. Now, the DOJ plans to use the total value of the undisclosed foreign account. This decision was made to increase the offense levels, which should lead to longer prison sentences for FBAR violators.
In fact, one news source pointed out that these changes can lead to significant increased sentences in some cases. A recent conviction revealed the defendant, who had failed to pay $150,000 in taxes, actually had an undeclared foreign account valued at $28 million. Had he not struck a deal before the DOJ’s most recent decision, he would be looking at a sentence ten times longer than he received.
Talk to A Tax Attorney
If you are facing charges from the DOJ for failing to properly report your FBAR account, you could be facing a much more severe punishment than you thought. That’s why it’s a good idea to consult with a tax attorney about your case. The experienced attorneys at Robert J. Fedor Esq., LLC have helped people all across the U.S. with problems concerning their foreign bank accounts. We will fight in court to get you the very outcome for your case.
