Skip to Main Content
 

Scott Michel Comments on FBAR Penalty Examinations

November 7, 2017, Bloomberg BNA Daily Tax Report

The IRS said at a recent conference that it is not presuming “willfulness” in FBAR penalty litigation.

“Obviously the IRS is trying to maintain reasonable and consistent positions as regards FBAR enforcement across the country and has a review process in place, and practitioners are highly appreciative of these efforts,” said Scott Michel, a member of Caplin & Drysdale, Chartered.

However, he said, “This is often not filtering down to the field.”

In training sessions over the last seven years, Michel said, some line agents and managers have heard senior officials emphasize penalizing taxpayers. He said the FBAR is an information return “that was never intended to have a relationship to taxes.”

Some agents “are acting to pursue such penalties in a wide swath of situations where it may not be appropriate,” Michel said.

For the full article, please visit Bloomberg BNA’s website (subscription required).

Excerpt taken from the article “IRS Won’t Presume Willful Failure to Report Foreign Accounts” by Alison Bennett for Bloomberg BNA’s Daily Tax Report.

________________________________________________

About Caplin & Drysdale
Having celebrated our 50th Anniversary in 2014, Caplin & Drysdale continues to be a leading provider of tax, tax controversy, and litigation legal services to corporations, individuals, and nonprofits throughout the United States and around the world. We are also privileged to serve as legal advisors to accounting firms, financial institutions, law firms, and other professional services organizations.

The firm's reputation over the years has earned us the trust and respect of clients, industry peers, and government agencies. Moreover, clients rely on our broad knowledge of the law and our keen insights into their business concerns and personal interests. Our lawyers' strong tactical and problem-solving skills - combined with substantial experience handling a variety of complex, high stakes, matters in a boutique environment - make us one the nation's most distinctive law firms.

With offices in New York City and Washington, D.C., Caplin & Drysdale's core practice areas include:

-Bankruptcy
-Business, Investment & Transactional Tax
-Complex Litigation
-Corporate Law
-Employee Benefits
-Exempt Organizations
-International Tax
-Political Law
-Private Client
-Tax Controversies
-Tax Litigation
-White Collar Defense

For more information, please visit us at www.caplindrysdale.com.

Washington, DC Office:
One Thomas Circle, NW
Suite 1100
Washington, DC 20005
202.862.5000
        New York, NY Office:
600 Lexington Avenue
21st Floor 
New York, NY 10022
212.379.6000

___________________________

Disclaimer
This communication does not provide legal advice, nor does it create an attorney-client relationship with you or any other reader. If you require legal guidance in any specific situation, you should engage a qualified lawyer for that purpose. Prior results do not guarantee a similar outcome.

Attorney Advertising
It is possible that under the laws, rules, or regulations of certain jurisdictions, this may be construed as an advertisement or solicitation.

© 2017 Caplin & Drysdale, Chartered
All Rights Reserved.