From the Tax Law Offices of David W. Klasing [Video]

IRVINE, Calif., Jan. 29, 2025 /PRNewswire/ — Many taxpayers believe that the difference between willful and non-willful FBAR tax violations is self-evident: you either intended to cheat or simply made a good-faith error. In reality, the IRS, the Department of Justice (DOJ), and federal courts apply a broader, more intense definition of willfulness—encompassing not just intentional misconduct but also “objective recklessness” and “willful blindness.” Even garden-variety oversights that appear innocent may be misconstrued as deliberate attempts to dodge tax obligations, potentially triggering life-altering civil tax penalties or—if the government discerns intentional cheating—an exponentially worse criminal tax investigation & prosecution by the IRS Criminal Investigation Division (CID).

The Bank Secrecy Act and FBAR BasicsUnder the Bank Secrecy Act, U.S. taxpayers must file an FBAR (FinCEN Form 114) if their foreign financial account balances exceed $10,000in aggregate at any point during a calendar year. A failure to timely and accurately file …