Skip to Main Content

Zhanna Ziering Comments on FBAR Penalty Case

July 13, 2018, MLex US Tax Watch

The Colorado federal judge in the US v. Wahdan et al case has set a July 18 hearing to clarify how the litigation will proceed if she decides the Internal Revenue Service cannot impose penalties over $100,000 for willful failure to file a Report of Foreign Bank and Financial Accounts (FBAR).

The case is being closely watched by practitioners to see if the court will follow the lead of the Texas federal judge who ruled in May that the IRS's delegated authority to impose willful FBAR penalties is capped at $100,000. The decision in the Texas case, US v. Colliot, has caused a stir in the FBAR community.

. . .

Zhanna A. Ziering, a tax litigator with Caplin & Drysdale's New York office, said it appears the judge is trying to clarify whether the Wahdans' motion was intended to dispose of the entire case or just to settle the question of whether the IRS can impose penalties exceeding $100,000 per violation.

"This case ultimately has two issues," said Ziering. "One is whether the failure to file FBARs was willful, which the Wahdans have denied. The other issue is what the penalty amounts should be."

"I think the judge wants to know if the Wahdans want a ruling on penalty amounts, and then proceed to trial on the willfulness issue," Ziering continued, "or are they saying the entire assessment was arbitrary and capricious and the whole case should be tossed."

For the full article, please visit MLex’s website (subscription required).

Excerpt taken from the article “Colorado FBAR Penalty Case Raises Procedural Questions” by Kristen Parillo for MLex US Tax Watch.


About Caplin & Drysdale
Celebrating our 55th Anniversary in 2019, Caplin & Drysdale continues to be a leading provider of legal services to corporations, individuals, and nonprofits throughout the United States and around the world. We are also privileged to serve as legal advisors to accounting firms, financial institutions, law firms, and other professional services organizations.

The firm's reputation over the years has earned us the trust and respect of clients, industry peers, and government agencies. Moreover, clients rely on our broad knowledge of the law and our keen insights into their business concerns and personal interests. Our lawyers' strong tactical and problem-solving skills -- combined with substantial experience handling a variety of complex, high stakes, matters in a boutique environment -- make us one the nation's most distinctive law firms.

With offices in New York City and Washington, D.C., Caplin & Drysdale's core practice areas include:
For more information, please visit us at
Washington, DC Office:
One Thomas Circle NW
Suite 1100
Washington, DC 20005
New York, NY Office:
600 Lexington Avenue
21st Floor
New York, NY 10022


This communication does not provide legal advice, nor does it create an attorney-client relationship with you or any other reader. If you require legal guidance in any specific situation, you should engage a qualified lawyer for that purpose. Prior results do not guarantee a similar outcome.

Attorney Advertising
It is possible that under the laws, rules, or regulations of certain jurisdictions, this may be construed as an advertisement or solicitation.
©2021 Caplin & Drysdale, Chartered
All Rights Reserved.

Related Professionals

Related Practice Area(s)