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Georgia Law Review

Journal

2020

FBAR Penalties

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Full-Text Articles in Law

Pay Toll With Coins: Looking Back On Fbar Penalties And Prosecutions To Inform The Future Of Cryptocurrency Taxation, Caroline T. Parnass Jan 2020

Pay Toll With Coins: Looking Back On Fbar Penalties And Prosecutions To Inform The Future Of Cryptocurrency Taxation, Caroline T. Parnass

Georgia Law Review

Cryptocurrencies are gaining a foothold in the global
economy, and the government wants its cut. However, few
people are reporting cryptocurrency transactions on their tax
returns. How will the IRS solve its cryptocurrency
noncompliance problem? Its response so far bears many
similarities to the government’s campaign to increase Reports
of Foreign Bank and Financial Accounts (FBARs). FBAR
noncompliance penalties are notoriously harsh, and the
government has pursued them vigorously. This Note explores
the connections and differences between cryptocurrency
reporting and foreign bank account reporting in an effort to
predict the future regime of cryptocurrency tax compliance.