Friday, August 16, 2013

Penalty for not filing FBAR the ulitimate consequence

My feeling is there is a much better chance that one could go to prison for an unfiled FBAR than die in a plane crash. But that is more of a testament to modern-day Airline Transport safety than there being a huge risk of imprisonment for not filing an FBAR.

This is my thinking: My guess is that there are about 1.5 million US persons with FBAR obligations (most of those Ex-pats) , with only a small fraction of those who used the "proper" channels of OVDI. So how many of the rest can the "Justice" Department imprison? My guess, as at most, 300 over the next 10 years. And those will likely be pleas down from much more serious charges, not just naked FBAR/tax evasion charges (This is not to say they won't get a handful of show cases)

What do you think about these numbers? Will the US Bureau of Prisons be building huge new complexes to house all these new FBAR criminals? Or will the number incarcerated for tax/BSA prisoners stay about the same, with the IRS just using FBAR violations to get more money?  

Penalty for not filing FBAR the ulitimate consequence

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