US Couple Owe $1M In FBAR Penalties - OUCH !!!

According to Law360, an American couple owe the government almost $1 Million in FBAR Penalties and interest for willfully failing to report their overseas bank account, the U.S. told a federal court in a civil action to collect tax penalties.

Juan and Catherine Reyes did not file the report, commonly known as an FBAR, for 2010, 2011 and 2012 for a foreign bank account containing over $2 million, the U.S. said in a complaint filed in U.S. v. Juan Reyes and Catherine Reyes, case number 1:21-cv-05578, in the U.S. District Court for the Eastern District of New York on October 7, 2021.

Juan Reyes was born in Nicaragua but has lived in the U.S. for more than 60 years and is a naturalized American citizen, the U.S. said in its complaint. His parents opened an account for him at Banco de Londres y America del Sur in 1972. Catherine Reyes became a joint owner of the account around 2000, it said. 

They Linked The Account To Credit Cards
That Paid For Their Domestic Living Expenses,
The U.S. Alleged.

• 
  The couple filed joint federal income tax returns for the 2010-2012 tax years without disclosing the account, the U.S. claimed.
• They checked "No" on each year's Schedule B form when asked if they had an interest in a foreign account, the U.S. said. 
• They also did not disclose the account to their tax preparer for the 2010-2012 tax years, the U.S. added. 

As of July 2021, each owed $472,000 in penalties and interest, the U.S. said.

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