TAXPAYER F.B.A.R. VICTORIES
The Bank Secrecy Act ("B.S.A.") requires U. S. persons
with certain financial interests in foreign accounts to file an
annual report known as an "F.B.A.R.," which is embodied
in FinCEN Form 114 (Report of Foreign Bank and Financial Accounts).
Two February decisions provided welcomed news to F.B.A.R.
non-filers.
Penalties Assessed Per Report
In a 5-4 split decision, the U.S. Supreme Court held in
Bittner v. U.S. 1 that non-willful F.B.A.R.
violations apply on a per-report basis, not a per-account basis,
significantly reducing potential penalties.
The petitioner was a dual citizen of Romania and the U.S. He
returned to Romania in the 1990's where he launched a
successful business career. Like many dual citizens, he was unaware
that the U.S. required its citizens to report their overseas
financial accounts even while living abroad. After returning to the
U.S. in 2011, he learned of his reporting obligations and prepared
the required
