New resources from Deloitte Tax LLP’s Global Information Reporting group address a recent US Supreme Court ruling on the application of the civil penalty for a non-willful failure to file Form 114, Report of Foreign Bank and Financial Accounts (FBAR), and important considerations for taxpayers regarding the 2023 qualified intermediary (QI) withholding agreement.
FBAR failure-to-file penalties
The Supreme Court on February 28 held in Bittner v. United States that the maximum civil penalty for a non-willful failure to file an FBAR report accrues on a per-report basis and not on a per-account basis. As a result of this decision, the maximum civil penalty for a non-willful failure to file a complete and timely FBAR is limited to $10,000, adjusted for inflation.
A tax alert from the Global Information Reporting group discusses FBAR filing rules and the potential impact of the Bittner decision on taxpayers.
QI agreement
The Treasury Department and the IRS late last year issued Rev. Proc. 2022-43 finalizing the 2023 qualified intermediary withholding agreement. The 2023 QI agreement contains significant changes from the 2017 QI agreement, and the new rules apply to QI agreements in effect on or after January 1, 2023.
A new “5x5” reference guide from the Global Information Reporting group identifies five insights taxpayers need to know about the 2023 agreement and five actions taxpayers should consider as they implement it. (A tax alert summarizing Rev. Proc. 2022-43 was released last December.)
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