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Scenes from the jaywalker hunt

May 23, 2011

The horrible FBAR amnesty continues to grind up innocent citizens for no purpose. Check out this story from a comment on this Federal Tax Crime Blog post:

Anonymous said...
I have a client - she signed a poa when her father gifted her some foreign property. Unbeknown to her, he opened a bank account that was used to facilitate payment of taxes in the home country and disbursement of funds to her. She never signed anything with the bank, never got bank statements and never had any contact.

She filed under the 2009 OVDI. The net tax on the income in the account was $100 for all six years, in total. Because of an error her accountant made, she is in fact entitled to a refund of $700.

The IRS says that she caused the account to be opened by giving POA - this occured about 25 years ago. They say a penalty is due of $40k based on a high balance.

I pleaded with agent and supervisor who maintain this was decided by a tech advisor. The only appeal rights I know of are to put it in audit where I start with a minimum of $60k in penalties.

Because you have to shoot the jaywalkers so you can slap the real criminals on the wrist.

Meanwhile, Turbotax Tim Geithner and empire-building IRS Commissioner Shulman continue to misallocate IRS resources to their new preparer regulation bureaucracy while neglecting illegal tax credit scams and prisoner looting of the tax system. Priorities.

Tags: FBAR.FBAR amnesty.Jack Townsend.shooting jaywalkers.tax crime.