District Court rules FBAR penalty is per form


The U.S. District Court for the District of New Jersey has ruled in favor of the taxpayer in United States v. Giraldi (No. 2:20-cv-02830M) on the issue of whether the non-willful penalty for failure to file the IRS Report for Foreign Bank and Financial Accounts (FBAR) is imposed for each form not filed or each account that would be reported on a form.

The court ruled that the non-willful penalty is assessed on a per-form basis and the penalties for which Giraldi was liable were capped at $40,000. This outcome is now the third district court opinion out of four to support the interpretation of the statue that the non-willful penalty is per form. For more information, please see our prior coverage on the previous district court cases.



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