U.S. v. Mahyari, 3:20-cv-1887-IM (DC-Or. Jan. 24, 2024)
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Difficulties Understanding English Did Not Negate Willful Penalty (U.S. v. Mahyari, 3:20-cv-1887-IM (DC-Or. Jan. 24, 2024)
The IRS determined that Ali Mahyari and his spouse willfully failed to disclose qualifying foreign bank accounts in 2011, 2012, and 2013, and imposed a penalty of $604,860 in total for the violations. The court held that a willful violation of the FBAR reporting requirements includes “both knowing and reckless” violations for purposes of a civil FBAR penalty.
The Mahyaris argued that they “faced significant barriers adjusting to American laws and practices and becoming proficient in the English language,” and that their “limited English skills and little knowledge of the intricacies of the American tax system,” made them “legitimately unaware,” of the FBAR reporting requirements. The court noted that were it to accept that the Mahyaris, like many other immigrants, had difficulty understanding