The IRS may assess penalties for a person’s failure to file a required FBAR. If the person’s failure to file was willful, the IRS can impose a penalty equal to 50% of the account balance or $100,000, whichever is greater. If an individual dies, can the IRS assess and collect an FBAR penalty for failing to disclose a foreign account?
Absent some specific direction by Congress, whether an action created by federal statutory law survives the death of the plaintiff is a matter of federal common law. Generally, under federal common law, a claim survives death and can be enforced if it is remedial and not punitive. Sharp v Ally Fin., Inc., 328 F.Supp 3d 81, 88-89 (E.D.N.Y. 2018). Tax penalties are typically considered remedial and not punitive because their purpose is to reimburse the government for the costs of investigation and enforcement. Estate of Kahr, 24 AFTR 2d...
