A Win for Taxpayer in Non-Willful FBAR Penalty Case In The Ninth Circuit Court of Appeals
By Lynn K. Ching In March 2021, a taxpayer prevailed on a significant issue in a non-willful FBAR case. The issue was whether 31 U.S.C. § 5321(a)(5)(A) authorizes the IRS to impose multiple non-willful penalties - up to $10,000 for each foreign bank account that was required to be listed on the FBAR - when an untimely, but accurate FBAR has been filed. The Ninth Circuit Court of Appeals concluded that § 5321(a)(5)(A) authorizes the IRS to impose up to one non-willful penalty of $10,000 per FBAR filing when an untimely, but accurate, FBAR is filed, no matter the number of foreign accounts (as opposed to $10,000 per FBAR account as argued by the government). Ninth Circuit Court of Appeals In United States of America v. Boyd, 991 F 3d…