Not Filing FBAR Return may Cost Businessman $1.3 Million

The IRS is demanding $1.3 million dollars from Benhard Gubser, who became a U.S. naturalized citizen in 1992. The IRS has stated that Mr. Gubser “willfully failed” to report his Swiss bank account in 2008. Under federal law, the civil penalty for non-willful failure to file an FBAR (Report of Foreign Bank and Financial Accounts) is $10,000. The penalty for a willful failure to file an FBAR is the greater of $100,000 or one-half the value of the undisclosed account. Gubser is suing the IRS, stating that the non-filing was due to his accountant’s mistake, and was not a “willful failure to file”.

You can read more about this case on this FBAR case at the Wall Street Journal

If you have foreign bank accounts or other offshore assets, you need to understand the danger of not properly reporting these assets. Oftentimes, local accountants and franchise tax-preparation services don’t completely understand foreign account reporting. If you have any questions or concerns about your foreign accounts, please contact us. The initial consultation is free, and will be kept in the strictest of confidence.