US Drops Appeal Seeking FBAR Penalties From Mexican Resident (1)

The US withdrew its bid to reinstate part of a taxpayer’s liability after a federal court found he wasn’t subject to FBAR penalties because he is a resident of Mexico.

FBARs, or Reports of Foreign Bank and Financial Accounts, are required to be filed annually by US citizens, residents and other entities under the federal Bank Secrecy Act.

Alberto Aroeste isn’t a US citizen, but traveled frequently to the country for work and acquired a green card. His status as a Mexican resident under the US-Mexico Income Tax Convention led a federal district court to discharge $21,000 in outstanding ...