FBAR Non-Willfulness Defined: Streamlined Procedures & Delinquency Procedures (Golding & Golding)

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When it comes to determining which IRS route taxpayers take in order to get into compliance for prior years’ missed foreign income, assets, investments, and accounts on the FBAR — the most important distinction is between willful and non-willful. The difference between being classified as willful vs. non-willful is the difference between submitting to the Streamlined Filing Compliance Procedures or Delinquency Procedures (which may avoid or limit potential penalties) as opposed to having to travel to the IRS Voluntary Disclosure route (which typically rings in a 50% penalty for taxpayers who are unable to certify under penalty of perjury that they are non-willful). And, with the IRS aggressively pursuing taxpayers who falsify non-willful certification statements, it is important to understand the distinction between willful and non-willful. To counteract incorrect information on the World Wide Web by tax generalists purporting to be “experts,” here is an introductory guide to explain the difference between non-willful and willful FBAR conduct.