Prologue – U.S. Citizenship And The Tax, Form and Penalty Club
U.S. citizens are members of the world’s premier “tax, form and penalty club”. The law of Mr. FBAR is a testament to the American penchant for imposing penalties for various “form crimes”.
One of most interesting issues is whether there are constitutional limits to the penalties that can be imposed for failing to file an FBAR. The eighth amendment of the U.S. constitution does include the prohibition on “Excessive Fines”. Can a fine that might exceed the value in the unreported account be consistent with the “Excessive Fines Clause”? This is one of the most significant social and legal issues in 21st Century America.
The Supreme Court of the United States refused to hear an appeal from Monica Toth’s FBAR penalty. In her petition to the Supreme Court, she asked the court to consider whether FBAR penalties might violate the “Excessive Fines Clause”. The court declined to hear the Toth FBAR case. Justice Gorsuch wrote a powerful dissent in which he invited lower courts to consider the issue. In 2024, the Eleventh Circuit obliged and ruled that FBAR penalties ARE subject to the “Excessive Fines” clause in the eighth amendment. The litigant was none other than Mr. Isac Schwarzbaum – a true pioneer in the development of FBAR jurisprudence.
Isac Schwarzbaum – Discussion In Various Podcasts
I have explored the Schwarzbaum case in podcasts with Virginia La Torre Jeker and IRS Medic as follows:
Podcast – Virginia La Torre Jeker – September 9, 2024
YouTube Discussion IRS Medic – September 6, 2024
Slides used in YouTube Presentation – September 6, 2024
And here …
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