Tax Court Is Wrong Venue for FBAR Disputes, Appeals Court Says

Taxpayers must contest penalties levied for failure to report interests in foreign bank accounts at a US district court or US Court of Federal Claims, not the Tax Court, the Eleventh Circuit said Monday.

The notice requirements for failing to file a report of foreign bank and financial accounts penalties—known as FBAR—are found in Title 31 of the US Code, and are “distinct from and incompatible with” those of the Tax Code, which is in Title 26, the US Court of Appeals for the Eleventh Circuit said in an unpublished, unsigned decision.

The IRS imposed FBAR penalties on Stephen and ...