The Need for an Experienced New Jersey Former IRS Tax Attorney: United States Supreme Court Decides for United States Taxpayers!

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Posted on September 1, 2023 |

The landscape of tax law is complex and ever-evolving, and recent legal developments have brought significant relief to taxpayers entangled in Foreign Bank and Financial Accounts (FBAR) reporting situations. In a surprising decision, the U.S. Supreme Court has ruled for the U.S. taxpayers and at the same time, has highlighted the importance of seeking expert tax legal counsel, specifically from an experienced New Jersey tax attorney. This blog post examines the Supreme Court's ruling, its implications for taxpayers, and the invaluable role a seasoned NJ tax attorney plays in navigating the intricate terrain of FBAR reporting.

What Significance Does This US Supreme Court Decision Highlight?

In a unanimous decision, the Supreme Court handed down a pivotal ruling that has far-reaching implications for taxpayers facing FBAR-related issues. The case, which originated from a taxpayer's appeal against a substantial FBAR penalty, emphasized the importance of a "willfulness" standard when imposing penalties for failing to report foreign financial accounts.

The ruling clarified that a "willful" failure to report FBARs requires a higher burden of proof, shifting the responsibility onto the IRS to demonstrate that a taxpayer's actions were intentional and knowing. This ruling also serves as a safeguard against overzealous enforcement by tax authorities and reinforces the principle of fair treatment for taxpayers.

How Will This Decision Help United States Taxpayers?

The Supreme Court's ruling brings much-needed relief to taxpayers who may have inadvertently failed to report foreign financial accounts and reinforces the rule of penalties as a “per report basis, rather than the aggregate basis that the IRS was using to penalize US taxpayers in the past. The decision also highlights the significance of intent in determining penalties and provides for the protection of taxpayers who may have made genuine mistakes. However, the legal landscape remains complex, necessitating the expertise of a skilled NJ tax attorney to effectively leverage this ruling in favor of taxpayers.

Often, FBAR cases involve negotiations with the IRS to reach favorable settlements. A skilled tax attorney has honed the necessary negotiation skills and can advocate on your behalf, potentially reducing penalties and achieving the best possible outcome.  Further, an experienced New Jersey tax litigation attorney has the expertise in FBAR reporting and disclosure situations to place the taxpayer in the best position possible when resolving his or her offshore bank account reporting problems.

If you have an offshore bank account or other foreign financial reporting issue, contact Managing Partner Kevin E. Thorn at 201-842-7696 or visit his website at to schedule a consultation and discuss your case in detail.

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