Don’t let IRS penalties derail your finances.
FBAR Penalty Defense & Representation Services
At Verni Tax Law, our FBAR tax attorneys provide a comprehensive suite of legal services tailored to defend against FBAR penalties and ensure compliance with U.S. tax laws.
We understand the high stakes involved and offer appropriate representation before the IRS and U.S. Treasury.
Our services include:
- IRS audit and investigation defense
- Penalty mitigation for willful and non-willful violations
- Offshore Voluntary Disclosure Programs (OVDP, Streamlined Filing, Delinquent FBARs)
- Strategic advisory on FinCEN Form 114 compliance
Willful vs. Non-Willful FBAR Penalty Defense
The IRS categorizes FBAR violations as willful or non-willful, with vastly different consequences. Our attorneys carefully analyze your facts, develop strong legal arguments, and present compelling evidence to establish non-willfulness when applicable.
FBAR Audit Representation
If you’re under audit, our team manages the entire process:
- We handle all communication with IRS agents
- Prepare and submit the necessary documentation
- Defend your rights in interviews and negotiations
We will defend your case! We tailor strategies that minimize your exposure and protect your financial future.
Offshore Voluntary Disclosure Programs
Our attorneys help you enter the appropriate disclosure program to correct prior noncompliance.
- Streamlined Filing for Non-Willful Violations
- Traditional OVDP for willful violations (if reopened)
- Delinquent FBAR submissions with reasonable cause narratives
⟶ Request a private strategy session with our attorneys.
Understanding FBAR Requirements & Compliance
Foreign account reporting isn’t just complicated, it’s critical. Knowing what to file and when can save you from harsh civil and criminal penalties.
Who Must File FBAR (FinCEN Form 114)
U.S. individuals must file an FBAR if they have:
- A financial interest in or signature authority over one or more foreign accounts
- An aggregate balance exceeding $10,000 at any time during the calendar year
Reportable accounts include bank accounts, securities accounts, mutual funds, and even crypto custodial accounts held overseas.
FBAR Filing Deadlines & Extensions
- Annual Due Date: April 15
- Automatic Extension: Until October 15 (no form required)
- How to File: Electronically via the FinCEN BSA e-filing system
Failure to file on time can lead to steep penalties, even if the oversight was unintentional.
Common FBAR Compliance Mistakes
Even diligent taxpayers can make errors. The most frequent mistakes include:
- Misreporting account balances
- Failing to disclose joint or signatory accounts
- Ignoring crypto and digital assets
A consultation with our FBAR compliance lawyer can help you identify and address these red flags proactively.
Proactive planning is the key to avoid costly missteps!
FBAR Penalty Structure & Mitigation Strategies
FBAR penalties can be financially devastating, but with the right legal strategy, they’re often negotiable.
Non-Willful FBAR Penalties
- Penalty Amount: Up to $10,000 per account
- Defenses: Reasonable cause, lack of knowledge, or incomplete records
We build strong defenses supported by legal precedent and factual evidence to minimize or eliminate liability.
Willful FBAR Penalties
- Penalty Amount: Exceeding $10,000 of the account balance per year
- Risks: Criminal prosecution, asset forfeiture, and long-term financial damage
Our team aggressively challenges the IRS’s classification of willfulness using:
- Taxpayer intent analysis
- Procedural violations
- Favorable case law
Penalty Reduction & Elimination Tactics
Our FBAR penalty attorney team uses proven strategies such as:
- First-time abatement requests
- IRS Appeals negotiation
- Submission of detailed, reasonable cause letters
Don’t let the IRS penalize your account balance.
Verni Tax Law helps you take the right steps. We can defend your case and save you money!
Why Choose Verni Tax Law for FBAR Representation
When FBAR penalties threaten your finances, experience matters. Verni Tax Law stands apart as a premier legal resource for international tax issues.
Specialized FBAR & International Tax Expertise
With years of FBAR-specific litigation experience, our attorneys:
- Focus exclusively on tax law
- Understand IRS enforcement trends
- Keep up with evolving international reporting rules
Licensed Attorney
Our lead attorney is:
- Admitted to multiple state bars
- Actively practicing in tax courts
- Familiar with local and federal procedures
Proven Track Record in FBAR Cases
- Consistent penalty reduction results
- Recognized by peers and clients for excellence
- Backed by glowing testimonials and industry awards
Join hundreds of clients who’ve successfully resolved FBAR issues
FBAR Legal Process & What to Expect
Facing an FBAR issue? Don’t worry, we are here to help with a simple process. Here’s how our legal process works:
Initial Case Assessment & Strategy Development
- Review account history and IRS communications
- Analyze willfulness risks and penalty exposure
- Recommend the best legal route forward
IRS Communication & Negotiation
- Serve as your legal representative with the IRS
- Draft and submit responses, disclosures, and appeals
- Negotiate settlements and penalty reductions
Resolution & Ongoing Compliance
- Finalize IRS agreements
- Ensure full compliance moving forward
- Provide ongoing advisory services
Our goal is not just case resolution; it’s prevention!
As a team of experienced tax attorneys, we’re trained to give you sound legal advice on tax issues to help you avoid inflated fees, penalties, and possible jail time.
Don’t wait for the IRS to get you. Save yourself before it gets too late
FAQs
What is the penalty for not filing an FBAR?
FBAR penalties range from $12,921 per account for non-willful violations to the greater of $129,210 or 50% of the account balance for willful violations.
Can I file FBAR late without penalty?
Late FBAR filing may lead to penalties, but reasonable cause defenses and first-time penalty abatement may apply with proper legal help.
Do I need an attorney for FBAR compliance?
For audits, penalties, or complex situations, an experienced FBAR tax attorney is crucial to protect your financial interests.
What accounts require FBAR reporting?
Any foreign financial account where you have a financial interest or signature authority, if the total exceeds $10,000 at any time during the year.
How long does FBAR penalty resolution take?
Most cases resolve in 6–18 months, depending on complexity and IRS workload.
Can FBAR penalties be reduced or eliminated?
Yes. With strategic legal arguments and evidence, penalties can often be significantly reduced or eliminated.
What’s the difference between FBAR and Form 8938?
FBAR is filed with FinCEN for accounts over $10,000. Form 8938 is filed with your tax return and includes broader asset types and higher thresholds.
