A taxpayer with more than $10,000 in a foreign bank is required to make disclosure under the Bank Secrecy Act of 1970. Disclosure is made on a
Report of Foreign Bank and Financial Accounts (FBAR) on Financial Crimes Enforcement Network (FinCEN) Form 114.
That would be at least $10,000 in aggregate on any given day, not even a calculation of the average daily balance throughout the year.
These amounts have not been inflated since 1970. Curiously, we aren't
talking about major money-laundering operations nor vast international criminal enterprises.
But talk about presumption of guilt...
Monica Toth was born in Argentina because her family had fled Germany to escape the Nazis. As an adult, she immigrated to America and became a citizen. Her father was successful in business and left her a
substantial inheritance, but the monies were in a foreign bank. He died
in 1999. She was not making the required financial disclosure for a
number of years but when she learned later of her obligation, she filed
years of back reports. This triggered an IRS audit in 2011, which found
she'd underpaid taxes in some years and overpaid in other years. They
still penalized her $40,000.
IRS sought the maximum penalty for failure to comply with the Bank Secrecy act, $2.1 million plus late fees and interest for another $1 million. The penalty is up to $100,000 or 1/2 of the monies in the accounts, whichever
is greater.
This isn't a criminal and it's perfectly clear where the monies came
from in the first place.
She sought relief under the excessive fines clause of the 8th amendment,
but hasn't gotten a federal court to agree with her. On the Supreme
Court, only Gorsuch was willing to grant cert; no other justice would
join him.
https://amylhowe.com/2023/01/23/justices-request-federal-governments-views-on-texas-and-florida-social-media-laws/
(search for Toth v. United States)
https://reason.com/2023/01/23/supreme-court-declines-case-challenging-excessive-irs-penalties/
--
IRS sought the maximum penalty for failure to comply with the Bank Secrecy >> act, $2.1 million plus late fees and interest for another $1 million. The
penalty is up to $100,000 or 1/2 of the monies in the accounts, whichever
is greater. ...
On Friday, January 27, 2023 at 11:24:47 PM UTC-5, Adam H. Kerman wrote:
A taxpayer with more than $10,000 in a foreign bank is required to make >>disclosure under the Bank Secrecy Act of 1970. Disclosure is made on a >>Report of Foreign Bank and Financial Accounts (FBAR) on Financial Crimes >>Enforcement Network (FinCEN) Form 114.
That would be at least $10,000 in aggregate on any given day, not even a >>calculation of the average daily balance throughout the year.
These amounts have not been inflated since 1970. Curiously, we aren't >>talking about major money-laundering operations nor vast international >>criminal enterprises.
But talk about presumption of guilt...
Monica Toth was born in Argentina because her family had fled Germany to >>escape the Nazis. As an adult, she immigrated to America and became a >>citizen. Her father was successful in business and left her a
substantial inheritance, but the monies were in a foreign bank. He died
in 1999. She was not making the required financial disclosure for a
number of years but when she learned later of her obligation, she filed >>years of back reports. This triggered an IRS audit in 2011, which found >>she'd underpaid taxes in some years and overpaid in other years. They
still penalized her $40,000.
IRS sought the maximum penalty for failure to comply with the Bank Secrecy >>act, $2.1 million plus late fees and interest for another $1 million. The >>penalty is up to $100,000 or 1/2 of the monies in the accounts, whichever >>is greater.
This isn't a criminal and it's perfectly clear where the monies came
from in the first place.
She sought relief under the excessive fines clause of the 8th amendment, >>but hasn't gotten a federal court to agree with her. On the Supreme
Court, only Gorsuch was willing to grant cert; no other justice would
join him.
https://amylhowe.com/2023/01/23/justices-request-federal-governments-views-on-texas-and-florida-social-media-laws/
(search for Toth v. United States)
https://reason.com/2023/01/23/supreme-court-declines-case-challenging-excessive-irs-penalties/
If you read the appellate court opinion >(https://casetext.com/case/united-states-v-toth-9), the outcome isn't >surprising.
Toth, in the original trial, represented herself, and repeatedly failed to >meet deadlines and directions of the court, including multiple suggestions >that she hire counsel. IRS counsel was able to convince the court that
her actions were stonewalling and met the requirements of willful failure
to report the accounts. The finding of willful avoidance is one of the >criteria necessary for imposition of the maximum penalty.
If you ask me, anyone who is facing a multi-million dollar cause of
action and doesn't spend a few thousand dollars to get competent advice,
is looking for trouble. Toth found it. I can't say for certainty (no one >can), but reading the opinion, I have to believe that with proper >representation from the onset, the outcome would have been far more
favorable to Toth.
ira smilovitz <ira.sm...@gmail.com> wrote:
If you read the appellate court opinion >(https://casetext.com/case/united-states-v-toth-9), the outcome isn't >surprising.No, I didn't. I'll look. Thanks
--
On Saturday, January 28, 2023 at 2:31:43 PM UTC-5, Adam H. Kerman wrote:
ira smilovitz <ira.sm...@gmail.com> wrote:
If you read the appellate court opinion >>>(https://casetext.com/case/united-states-v-toth-9), the outcome isn't >>>surprising.
No, I didn't. I'll look. Thanks
Ah, the problems of the English language. "If you read" was meant to be
"if one reads", not the implied criticism, "if you HAD read".
Adam H. Kerman wrote:
ira smilovitz <ira.sm...@gmail.com> wrote:
If you read the appellate court opinionNo, I didn't. I'll look. Thanks
(https://casetext.com/case/united-states-v-toth-9), the outcome
isn't surprising.
Ah, the problems of the English language. "If you read" was meant
to be "if one reads", not the implied criticism, "if you HAD
read".
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