Panama Papers Defendant in U.S. Pleads GuiltyThe Need to Report Foreign Bank & Financial Accounts
A United States person, including a citizen, resident, corporation, partnership, limited liability company, trust and estate, must file an FBAR to report
1. a financial interest in or signature or other authority over at least one financial account located outside the United States if
2. the aggregate value of those foreign financial accounts exceeded $10,000 at any time during the calendar year reported.
Penalties may vary :
U.S. Code citation
Civil Monetary Penalty Description
Current Maximum
31 U.S.C. 5321(a)(5)(B)(i)
Foreign Financial Agency Transaction - Non-Willful Violation of Transaction
$12,921
31 U.S.C. 5321(a)(5)(C)
Foreign Financial Agency Transaction - Willful Violation of Transaction
Greater of $129,210, or 50% of the amount per 31 U.S.C.5321(a)(5)(D)
31 U.S.C. 5321(a)(6)(A)
Negligent Violation by Financial Institution or Non-Financial Trade or Business
$1,118
31 U.S.C. 5321(a)(6)(B)
Pattern of Negligent Activity by Financial Institution or Non-Financial Trade or Business
$86,976
The First Panama Papers defendant’s son - to plead guilty in U.S. court for tax fraud, tax evasion, and willful failure to file a foreign bank account report. United States v. Von der Goltz
Von der Goltz had previously declared under the IRS’s streamlined domestic offshore program that the failure to disclose a foreign bank account was because he had been unaware of the requirement to report foreign accounts to the IRS.
Taxpayers that did not report foreign accounts (FBAR) may qualify for the streamlined
program and pay reduced penalties if their conduct was non-willful after filing or amending tax returns to report previously unreported foreign income.
Font: Bloomberg Law
