Non Willful Certification

Filing FBARs that list some foreign accounts and omit others is not automatically willful, but it raises the question a reviewing agent will ask first: why these accounts and not those? The answer depends on whether the omissions were operational mistakes or a selective pattern, and the account inventory decides which. “I reported my checking […]

Reporting foreign interest on your tax return is a favorable fact, but it does not choose the filing path for missed FBARs. The delinquent FBAR submission procedures and the streamlined procedures have different published conditions, and the right answer depends on what else was missed and whether the IRS has already made contact. “The interest

Reporting a foreign corporation’s salary or dividends on Form 1040 does not satisfy Form 5471, which is a separate information return tied to ownership. A streamlined certification for a missed Form 5471 must address both obligations, and the claim that all income was reported requires verification, not assumption. “I paid myself a salary from my

A tax preparer’s failure to ask about foreign accounts does not by itself establish non-willful conduct. The IRS requires a streamlined certification claiming professional reliance to identify the advisor and summarize the advice received. What the taxpayer disclosed, what the engagement covered, and what other signals arrived all shape whether the explanation holds. “My CPA

A wrong answer to the Schedule B foreign-account question is a significant fact, but it does not automatically determine whether an FBAR failure was willful or non-willful. The IRS and courts examine the entire record, including what the taxpayer knew, what was disclosed to the preparer, whether the return was reviewed, and whether the taxpayer