The Essential Tax Podcast with Mishkin Santa, Season 2, Episode 9

In this episode of The Essential Tax Podcast, Mishkin Santa discusses recent news items related to FinCEN Form 114 (FBAR) requirements, and how they will affect US and international tax reporting.

Tune in for these key takeaways:

• A brief history of the FBAR’s origins in the Bank Secrecy Act of 1970.

• A summary of which taxpayers need file an FBAR and an explanation of the aggregate reporting threshold that triggers the requirement.

• Tips for recordkeeping and due diligence that can aid in making ongoing FBAR reporting and potential audit defense more manageable.

• A discussion of recent court cases that have affected judicial treatment of FBAR disputes and penalty assessments.

• An overview of current penalties for noncompliance with FBAR filing requirements.

Further Resources:

• Bank Secrecy Act of 1970 - https://www.fincen.gov/resources/statutes-and-regulations/bank-secrecy-act

• IRS FBAR Practice Unit - https://www.irs.gov/pub/fatca/int_practice_units/fincen-form114-fbar.pdf

• IRS Schedule B - https://www.irs.gov/forms-pubs/about-schedule-b-form-1040

• United States v. Timberly E. Hughes - https://law.justia.com/cases/federal/appellate-courts/ca9/23-15712/23-15712-2024-08-21.html

• IRM 4.26.16.4.4.1 - https://www.irs.gov/irm/part4/irm_04-026-016

• United States v. Saydam - https://dockets.justia.com/docket/california/candce/4:2022cv07371/404157

• United States v. Rohrbasser - https://dockets.justia.com/docket/connecticut/ctdce/3:2024cv00959/159875

• United States v. Rotta - https://www.justice.gov/opa/pr/wealthy-miami-man-pleads-guilty-decades-long-scheme-defraud-irs

• United States v. Leeds - https://law.justia.com/cases/federal/district-courts/idaho/iddce/1:2022cv00379/50692/36/

• United States v. Gernot John Noell - https://www.courtlistener.com/docket/65386409/united-states-v-noell/

• United States v. Stephen M. Kerr - https://www.courtlistener.com/docket/16355120/united-states-v-kerr/

• United States v. Sagoo - https://dockets.justia.com/docket/texas/txndce/4:2024cv01159/397369

• Kurotaki v. United States - https://law.justia.com/cases/federal/district-courts/hawaii/hidce/1:2022cv00063/157629/50/

• Bittner v. United States - https://www.supremecourt.gov/opinions/22pdf/21-1195_h3ci.pdf

• IRS Memo SBSE-04-0723-0034 - https://www.irs.gov/pub/foia/ig/sbse/sbse-04-0723-0034-redacted.pdf

• 2025 FBAR Penalty Adjustment Table - https://www.federalregister.gov/documents/2025/01/17/2025-01374/financial-crimes-enforcement-network-inflation-adjustment-of-civil-monetary-penalties

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About The Essential Tax Podcast:

In each episode of The Essential Tax Podcast, Mishkin Santa takes on the complex world of tax — all the jargon, acronyms, and stuff that makes your eyes glaze over, and explains it in an impactful way to understand the complex and unknown areas.

Watch or listen to more episodes of The Essential Tax Podcast:

* YouTube: https://www.youtube.com/@TheWolfGroupPC

• Apple: https://podcasts.apple.com/us/podcast/the-essential-tax-podcast/id1754660944

• Spotify: https://open.spotify.com/show/2beZfOpwfBlBgWHlNelAOf

Connect and learn more from your host, Mishkin Santa:

• Connect with Mishkin on LinkedIn: https://www.linkedin.com/in/msanta

• Follow The Wolf Group on LinkedIn: https://www.linkedin.com/company/the-wolf-group-pc

• Read Mishkin’s bio on The Wolf Group’s website: https://thewolfgroup.com/our-people/mishkin-santa