Tax attorneys Chad Vanderhoef and James Dawson co-authored a Bloomberg Law article discussing challenges and strategies for disputing Reports of Foreign Bank and Financial Accounts (FBAR) penalties with the Internal Revenue Service (IRS). The authors highlight that while taxpayers often struggle when challenging FBAR penalties, recent developments have shown mixed results. They emphasize the importance of asserting novel, nuanced arguments to complement the general non-willful assertions, such as challenging the IRS’s penalty calculation methodology or invoking the Excessive Fines Clause of the Eighth Amendment. The article encourages practitioners to think creatively and develop unconventional arguments that could potentially lead to a winning tactic in FBAR cases.
READ: Disputing FBAR With the IRS Requires Novel, Nuanced Arguments (Subscription required)
