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FBAR Penalties and the Treasury Offset Program: Tax Court Affirms IRS’s Denial of CDP Hearing

ByJustin Hughes

Introduction: In Jenner v. Commissioner, 163 T.C. 7 (Oct. 22, 2024) (link to opinion), the U.S. Tax Court held that the Internal Revenue Service (“IRS”) was under no obligation to provide a husband and wife with a collection due process (“CDP”) hearing prior to offsetting Social Security benefit payments under the Treasury Offset Program (TOP)….

Form 5471
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DC Circuit: Tax Court was Wrong; IRS has the Authority To Assess Form 5471 Penalties

ByJustin Hughes

Summary On Friday, May 3, 2024, the U.S. Circuit Court for the D.C. Circuit overturned the Tax Court’s decision in Farhy v. Commissioner, ___ F.4th ___ (D.C. Cir. 5/3/24) (link to opinion) and held that the IRS has authority under § 6038(b) to assess Form 5471 penalties.   The Tax Court previously held that the…

Image of US Tax, Form 3520, Form 3520-A, Gavel Rendering Judgment
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Tax Court Rejects Excessive Fines Clause Argument and Upholds $11 Million Form 3520 and Form 3520-A Penalties

ByJustin Hughes

The Mukhi v Commissioner[1] case is another example of just how severe the penalties are for failing to report certain foreign financial activity timely; in this case, it was the failure to report foreign trusts, related trust activity, and ownership of a foreign corporation on Form 3520, Form 3520-A, and Form 5471 in a timely…

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Non-Resident Aliens Traveling from U.S. During COVID-19 Emergency Period Should Consider Relief in IRS Rev. Proc. 2020-20

ByJustin Hughes

Overview of IRS Rev. Proc. 2020-20 Rev. Proc. 2020-20 (link) provides certain qualifying non-resident aliens some administrative relief for certain extended stays in the U.S. caused by travel disruptions arising during the COV-19 pandemic. As discussed below, if the individual meets the revenue procedure’s criteria, then the individual may exclude up to 60 days from…