U.S. v. James J. Kelly, No. 23-1481, 6th Circuit, 2024
This post is part of our series on recent important tax cases that may be of interest to accounting, tax, and finance professionals. For more like this, see our Federal Tax Update and California Federal Tax Update, which offer a comprehensive analysis of the year’s most pivotal tax developments.
Appeal Failed for Willful Penalties (U.S. v. James J. Kelly, No. 23-1481, 6th Circuit, 2024)
The Appellate Court found that the “undisputed facts show that James Kelly knew about his foreign account, undertook considerable efforts to keep it secret, did not consult with any professionals about his tax obligations, and then failed to ensure that the FBARs were submitted after learning he had not met these reporting requirements in the past. Given all of this, Kelly’s failure to satisfy his FBAR requirements for the years 2013, 2014, and 2015 was a willful violation of the Bank Secrecy Act.” The Court affirmed the judgment of the district court.