A few months ago, a reader of Due Diligence wrote to us and said we were being “alarmist.” Many readers can’t fathom how the government can and will impose huge penalties against taxpayers with unreported offshore accounts. Unlike other IRS penalties, those imposed on undeclared foreign bank accounts are based on the asset value not the tax deficiency. If you think this is just some arcane legal mumbo jumbo, it’s not. The IRS recently assessed a 79 year old woman $21,666,929 in penalties. The tax loss to the IRS? Somewhere around $500 thousand. That’s a penalty of around 4000%
via Outrageous IRS FBAR Penalty? You Bet!- Due DiligenceDue Diligence.