Federal Tax Crimes: More District Court Thrashing Around on Arbitrary and Capricious Calculation of Willful FBAR Penalties (March 30, 2022)

Jack Townsend has made available for download his article, “More District Court Thrashing Around on Arbitrary and Capricious Calculation of Willful FBAR Penalties”, published on his Federal Tax Crimes blog. The abstract is as follows:

I have written before on the saga of Timberly Hughes.  Court Sustains Willful FBAR Penalty for Two of Four Years (Federal Tax Crimes Blog 10/15/21), here.  Hughes is back in the news, so to speak.  In United States v. Hughes (N.D. Cal 18-cv-05931-JCS 3/29/22), here, Magistrate Judge Spero is trying to wrap up the case so that it goes to the District Judge and then, apparently, to the Ninth Circuit.  (The docket entries in CourtListener are here.)

 In high level summary:

1. The court confirms that for the two years it previously found nonwillful, that while losing on the willful penalty for the 2 years, there would be no nonwillful penalty for those years.  The court says (p. 3, n 4):

To see the full article, click: “More District Court Thrashing Around on Arbitrary and Capricious Calculation of Willful FBAR Penalties”

Posted by Anthony Tran, Associate Editor, Wealth Strategies Journal

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