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Showing posts from September, 2018

Court Holds That Liability for FBAR Civil Willful Penalty Survives Death

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1. FBAR stands for the Foreign Bank Account Report and speaks to the responsibility of certain US persons to disclose foreign financial interests (even mere signing authority).

2. The responsibility for filing FBARs is not new.  It dates back to 1970.

3. FBARs have nothing to do with FATCA.  FATCA has just made it easier to track those who fail to comply with FBAR rules.

4. Now it seems that penalties for noncompliance may survive death.  So for those hiding money?  Now you know!


“Death may be an avenue of escape from many of the woes of life, but it is no escape from taxes.” Id.
In United States v. Schoenfeld (M.D. Fla. 3:16-cv-1248-J-34PDB), by order dated 9/25/18, the Court held (p. 37) that the "the Court finds that the Government's claim did not abate upon Steven Schoenfeld's death."  

The reasoning for the holding is found at pp. 24-36.  The first 24 pages include a short one-page introduction and then 23 pages disposing of procedural issues arising from the death of…

Useful CIOT Tax Guides for UK Tax

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Foreign Bank Enabler Pleads Guilty to FATCA Crime Based on Undercover Operation (9/11/18)

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Former CEO of bank based in St Vincent & the Grenadines pleads guilty to conspiring to defraud the United States by failing to comply with the Foreign Account Tax Compliance Act (FATCA).  Baron was extradited to the United States from Hungary in July 2018. 
Here’s the bank’s website - https://www.loyalbank.com/
Baron is the second defendant to plead guilty in this case.  On July 26, 2018, Arvinsingh Canaye, formerly the General Manager of Beaufort Management Services Ltd. in Mauritius, pleaded guilty to conspiracy to commit money laundering. 
First Ever Conviction for Failing to Comply with Foreign Account Tax Compliance Act (FATCA)
Earlier today in federal court in Brooklyn, Adrian Baron, the former Chief Business Officer and former Chief Executive Officer of Loyal Bank Ltd, an off-shore bank with offices in Budapest, Hungary and Saint Vincent and the Grenadines, pleaded guilty to conspiring to defraud the United States by failing to comply with the Foreign Account Tax Compliance A…

Thinking About Crypto

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This is a great article on US tax for crypto-currency  from August 2018's edition of Tax Adviser.