FBAR and FATCA violations are either willful or non-willful in nature. The penalties for inadvertent or non-willful violations are understandably lesser than those for willful non-compliance. The IRS punishes those who non-willfully violate FBAR filing mandates with penalties of up to $10,000 per non-complying tax year.
A group of several Americans living abroad - who call themselves "Republicans Overseas" - have vowed to continue their fight against the Foreign Account Tax Compliance Act (FATCA) in spite of a recent dismissal of their claims by the Sixth Circuit Court of Appeals.
Bitcoins are one example of a new form of currency referred to as cryptocurrency, digital currency or virtual currency. It is a type of currency purchased and exchanged online. Users may wonder whether or not their actions with these types of digital assets are in compliance with United States tax laws. Unfortunately, the Internal Revenue Service (IRS) has yet to provide any definitive guidelines. The federal agency was recently chastised by Congress for a lack of clarity and called to put together "additional guidance on the tax consequences and basic tax reporting requirements" for those who use cryptocurrency.
The concept of willfulness in the context of non-compliance with tax reporting and payment regulations concerning offshore accounts has been a popular topic in legal circles lately. So much so that the American Bar Association recently held a conference dealing specifically with important issues in that arena.