United States v. Wahdan

A question appears at the bottom of Schedule B (Interest and Dividend Income) of the Form 1040 (U.S. Individual Income Tax Return) that asks individual taxpayers if during the taxable year they had any interest in or signature or other authority over a bank, securities, or other financial account in a foreign country during the tax year.  Based upon a review of historical tax forms, the question first appeared on the 1976 Schedule B.  The historic Form 1040 instructions for 1976 and 1977 indicate that the FBAR was originally designated as Form 4683 for 1976 and subsequently revised and renumbered as the Form 90-22.1 in 1977.
Continue Reading Is a Circuit Split Brewing over FBAR Willfulness Penalties?

The U.S. District Court for the District of Connecticut has joined a growing debate among lower courts regarding the appropriate civil penalty applicable to willful FBAR violations through its ruling in United States v. Garrity.  The FBAR statute, regulations, instructions, and related guidance require that taxpayers annually report to the Treasury