Case: FBAR Penalty Not Internal Revenue Tax Requiring Full Payment for Court Jurisdiction (Fed. Cl.) (IRC §7422)

April 8, 2021, 5:00 AM

FBAR penalties are not internal-revenue taxes requiring full payment before a suit for a refund can be brought, the Court of Federal Claims held. Taxpayer was assessed FBAR penalties for his alleged failure to timely file reports of foreign bank accounts. Taxpayer filed a complaint challenging the $750,000 penalty. Taxpayer paid $1,000 against the penalty with the primary argument that the penalty was erroneous and thus the payment was an illegal exaction. The government counterclaimed for the remainder of the penalty. Taxpayer sought to dismiss his own case for lack of jurisdiction as a a recent Federal Circuit decision upheld...

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