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FBAR penalties are unfair--taxpayer advocate

FBAR penalties are unfair--taxpayer advocate

Old Jan 14th 2014, 12:02 am
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Default FBAR penalties are unfair--taxpayer advocate

The Taxpayer Advocate, the IRS watchdog on behalf of taxpayers, issued a report where they blasted the FBAR voluntary disclosure program as being ridiculously unfair and carrying draconian penalties.

http://finance.fortune.cnn.com/2014/...iid=SF_TS_Lead
Olson's report found that for the 2009 program, launched after a landmark crackdown on Swiss bank giant UBS AG for enabling wealthy Americans to dodge taxes through hidden private accounts, the average taxpayer ended up paying penalties averaging nearly four times, or 386%, of the basic tax owed.

Less wealthy taxpayers fared even worse. Olson found that the bottom 10% of those who entered the 2009 program, as measured by an average account balance of $44,885, got hit with penalties equal to nearly six times the amount of tax owed. Taxpayers wending their way through the program without legal representation got hosed even more, paying penalties of eight times. By contrast, the largest tax dodgers got socked with penalties equal to three times their unreported tax bills -- perhaps a sign of good lawyering affordable by the wealthy.

"The penalties are extraordinarily high as compared with most other penalties the IRS administers," Olson's report says.
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Old Jan 14th 2014, 1:12 am
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Default Re: FBAR penalties are unfair--taxpayer advocate

So spend all your money - problem solved
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Old Jan 14th 2014, 2:22 am
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Default Re: FBAR penalties are unfair--taxpayer advocate

Nothing new here. It's been known for some time that the voluntary disclosure program is only for those who have a significant risk of criminal prosecution for tax fraud.

And those not in that category usually have other, simpler ways to resolve any tax issues they have.
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Old Jan 14th 2014, 2:33 am
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Default Re: FBAR penalties are unfair--taxpayer advocate

Originally Posted by JAJ View Post
It's been known for some time that the voluntary disclosure program is only for those who have a significant risk of criminal prosecution for tax fraud.
... but, unfortunately, only some people know that ...
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