Compliance Opportunities Exist for the Internal Revenue Service to Use Foreign Source Income Data

 

July 2005

 

Reference Number:  2005-30-101

This report has cleared the Treasury Inspector General for Tax Administration disclosure review process and information determined to be restricted from public release has been redacted from this document.

 

July 26, 2005

 

 

MEMORANDUM FOR DEPUTY COMMISSIONER FOR SERVICES AND ENFORCEMENT

 

FROM:                            Pamela J. Gardiner /s/ Pamela J. Gardiner

                                         Deputy Inspector General for Audit

 

SUBJECT:                     Final Audit Report - Compliance Opportunities Exist for the Internal Revenue Service to Use Foreign Source Income Data (Audit # 200430002)

 

 

This report presents the results of our review of the Internal Revenue Service’s (IRS) use of foreign source income data.  The overall objective of this review was to determine whether compliance opportunities existed for using the foreign source income data and Reports of Foreign Bank and Financial Accounts (Form TD F 90-22.1) (referred to as FBAR)[1] received as part of the Automatic Exchange of Information Program (AEIP).[2]

In summary, we found that investments made abroad by United States (U.S.) residents[3] have grown in recent years, nearly tripling from $2.6 trillion in 1999 to $7.2 trillion in 2003.[4]  ***(b)(2), (b)(5), (b)(7), (E)***

***(b)(2), (b)(5), (b)(7), (E)***

***(b)(2), (b)(5), (b)(7), (E)*** FBAR enforcement authority was delegated to the IRS by a provision of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act.[9]  Previously, the IRS could investigate FBAR filing noncompliance, but the Financial Crimes Enforcement Network maintained the responsibility of assessing FBAR penalties.  ***(b)(2), (b)(5), (b)(7), (E)***

***(b)(2), (b)(5), (b)(7), (E)***  The tax treaties restrict the use of the information exchanged to tax purposes only, covered in U.S.C. Title 26.  The FBAR enforcement authority is in U.S.C. Title 31. 

***(b)(2), (b)(5), (b)(7), (E)*** In June 2004, the Organization for Economic Co‑Operation and Development (OECD) revised the model tax treaty.  The OECD provided optional language for countries wishing to share information for nontax purposes.  The revised model tax treaty provides that countries may use the information for other purposes, provided the information may be used for such purposes under the laws of both countries.  While the OECD model treaty is only a model, it does signal a change in the use of tax treaty information.

***(b)(2), (b)(5), (b)(7), (E)***

Please contact me at (202) 622-6510 if you have questions or Richard Dagliolo, Acting Assistant Inspector General for Audit (Small Business and Corporate Programs), at 631-654-6028.

 

Table of Contents

Background

***(b)(2), (b)(5), (b)(7), (E)***

Appendix I – Detailed Objective, Scope, and Methodology

Appendix II – Major Contributors to This Report

Appendix III – Report Distribution List

Appendix IV – Outcome Measures

Appendix V – Management’s Response to the Draft Report

 

Background

United States (U.S.) residents[16] make significant foreign investments, and these residents are taxed on their worldwide income.  Investments made abroad by U.S. residents have grown in recent years, nearly tripling from $2.6 trillion in 1999 to $7.2 trillion in 2003.[17]  

***(b)(2), (b)(7)(E)***

To complement these strategies, the IRS has an in-house source of information concerning taxpayers’ foreign investments.  Under the Automatic Exchange of Information Program (AEIP), the IRS exchanges information with approximately 20 tax treaty countries.  As part of this Program, the IRS receives data (electronic and paper)[18] listing foreign source income paid***(b)(2), (b)(5), (b)(7), (E)*** to U.S. residents and business entities.  ***(b)(2), (b)(5), (b)(7), (E)***

Further, the Bank Secrecy Act (BSA)[20] enacted in 1970 is one of the main Federal laws that require monitoring of financial information.  A provision of the BSA that can further assist the IRS in identifying taxpayers with investments in foreign countries requires that a U.S. resident file a report with the U.S. Department of the Treasury if he or she has a financial account[21] with a value exceeding $10,000 in a foreign country.  A taxpayer complies with this law by noting this account on his or her U.S Individual Income Tax Return (Form 1040)[22] and by filing a Report of Foreign Bank and Financial Accounts (Form TD F 90-22.1) (referred to as FBAR).  In April 2003, the IRS signed a Memorandum of Agreement with the Department of the Treasury Financial Crimes Enforcement Network (FinCEN) that delegated its enforcement authority for FBAR reporting to the IRS.

This review was performed at the Large and Mid-Size Business (LMSB) Division, Office of International, in Washington, D.C., during the period November 2003 through December 2004.  The audit was performed in accordance with Government Auditing Standards.  Our review was limited to those foreign source income documents received electronically by the IRS for Tax Years (TY) 2000 and 2001.  ***(b)(2), (b)(7), (E)***  We also used FBAR data received by the IRS in Calendar Years 2000 through 2003.  Detailed information on our audit objective, scope, and methodology is presented in Appendix I.  Major contributors to the report are listed in Appendix II.

***(b)(2), (b)(5), (b)(7), (E)***

As far back as 1976, the Congress[23] urged the IRS to begin a systemic use of foreign source income documents. ***(b)(2), (b)(5), (b)(7), (E)***

Currently, the LMSB Division International function is responsible for obtaining the foreign source income data.  ***(b)(2), (b)(5), (b)(7), (E)***

Foreign source income documents report several different types of income such as interest, dividends, rents, and royalties.  The IRS received over ***(b)(2), (b)(7), (E)***million foreign source income documents electronically for TYs 2000 and 2001 from ***(b)(2), (b)(7), (E)***

For our review, we obtained all of the electronic foreign source income data the IRS received for TYs 2000 and 2001 (see Table 1).  Our analysis of the data shows:

·         ***(b)(2), (b)(7), (E)***

Table 1:  Foreign Source Income Reported by Country
for TYs 2000 and 2001

Country

2000 Gross Income

2001 Gross Income

***(b)(2),  (b)(7), (E)***

Source: Treasury Inspector General for Tax Administration (TIGTA) analysis of the foreign source income database.  (All figures are rounded.)

***(b)(2), (b)(7), (E)***

***(b)(2), (b)(5), (b)(7), (E)***The Government Accountability Office (GAO) Standards for Internal Control in the Federal Government require controls to ensure complete and accurate data. 

Recommendation

***(b)(2), (b)(5), (b)(7), (E)***

***(b)(2), (b)(5), (b)(7), (E)***

***(b)(2), (b)(7), (E)***

***(b)(2), (b)(5), (b)(7), (E)***

Foreign source income data ***(b)(2), (b)(5), (b)(7), (E)***reporting compliance of taxpayers receiving income from a foreign source

One of the principles of good tax policy is that similarly situated taxpayers are taxed similarly.[29]  As a testimony to this principle, the IRS Commissioner recently stated,  “A vigorous enforcement program is important.  Americans deserve to feel confident that when they pay their taxes, neighbors and competitors are doing the same.”[30]

***(b)(2), (b)(7), (E)***

***(b)(2), (b)(7), (E)***

Using a statistically valid sample[35] of ***(b)(2), (b)(7), (E)***foreign source income documents from the IRS’ TY 2001 database, we validated and perfected the TINs[36] for ***(b)(2), (b)(7), (E)***of the documents sampled using the IRS Integrated Data Retrieval System (IDRS).[37]  We then determined whether the income was reported on the taxpayer’s tax return.  ***(b)(2), (b)(7), (E)***

***(b)(2), (b)(7), (E)*** We projected our outcomes based on the results of our sample, ***(b)(2), (b)(7), (E)***See Appendix IV for additional information.

Foreign source income data ***(b)(2), (b)(5), (b)(7), (E)***compliance with FBAR filing requirements

A provision of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act[40] required the Secretary of the Treasury to study methods of improving compliance with BSA reporting requirements.  One method studied was delegating FBAR enforcement authority to the IRS.  Accordingly, enforcement authority was delegated from the FinCEN to the IRS in April 2003.  Previously, the IRS could investigate FBAR filing infractions, but the FinCEN maintained responsibility for assessing FBAR penalties.  The delegation order allows the IRS to assess FBAR penalties. 

A taxpayer must file an FBAR when the principal in his or her financial account in a foreign country exceeds $10,000 at any time during the calendar year.  The FBARs are posted to the Currency and Banking Retrieval System (CBRS).[41] The CBRS is available to FinCEN analysts, law enforcement personnel, and appropriate regulatory authorities for use, among other things, in tracking flows of money.  In addition to filing an FBAR, a taxpayer must indicate his or her interest in foreign accounts on Form 1040, Schedule B, Part III.  Willful failure to file an FBAR report can be punished under both civil and criminal law. 

***(b)(2), (b)(7), (E)***

***(b)(2), (b)(7), (E)***

Table 2:  FBAR Penalties

Number of FBAR Violators

Foreign Source Interest Income

Estimated Foreign Source Income Not Reported

FBAR Penalty

23

$519,841

$25,992,050

$2,300,000

12

$181,204

$ 0

$300,000

35

$701,045

$25,992,050

$2,600,000

Source:  TIGTA analysis of foreign source income data and the CBRS.

***(b)(2), (b)(7), (E)***

Further, in October 2004, the Congress provided the IRS with another tool to enforce FBAR compliance by revising FBAR penalties in the American Jobs Creation Act of 2004.[43]  It was enacted to amend the Internal Revenue Code (I.R.C.) of 1986, while it provides for amending the section of United States Code (U.S.C.) Title 31 that pertains to FBAR penalties by increasing the penalty amounts.[44] 

The maximum penalty for taxpayers who fail to file an FBAR and do not report the income from the foreign account can be the greater of $100,000 or 50 percent of the balance in the account at the time of the violation.  All of the taxpayers in our sample were paid a minimum of $5,000 in foreign source interest or dividend income, which would indicate the principal on these accounts was greater than $100,000.  ***(b)(2), (b)(7), (E)***

Table 3:  FBAR Penalties

Number of FBAR Violators

Foreign Source Interest Income

Estimated Foreign Account Principle

Estimated FBAR Penalty

***(b)(2),  (b)(7), (E)***

Source:  TIGTA analysis of foreign source income data and the CBRS.

Recommendations

***(b)(2), (b)(5), (b)(7), (E)***

To ensure compliance with all applicable laws, the Deputy Director, Collection Policy, Small Business/Self-Employed Division, should:

***(b)(2), (b)(5), (b)(7), (E)***

Management’s Response:  IRS management agreed with this recommendation.  ***(b)(2), (b)(5), (b)(7), (E)***

However, IRS management expressed concerns that the outcome measure calculation on FBAR penalties assumed the maximum willfulness penalty amount would be assessed on those taxpayers that also did not report the foreign source income on their respective income tax returns.  They stated that calculating the penalty in this manner fundamentally misstates the penalties foregone because it assumes the person’s failure to file an FBAR report was willful.  Also, IRS management disagreed with our calculation of the value of the foreign account.  Specifically, the IRS stated that the FBAR penalty would be calculated on the account value at June 30th following the close of the reportable year.  Without proof of the actual amount on deposit on June 30th following the close of the reportable year, the penalty is limited to the lesser figure of $25,000 or the maximum unverified amount in the account. 

Office of Audit Comment:  We are also concerned about the decisions regarding FBAR compliance initiatives.  The I.R.C.[45] states that a person who willfully fails to file an FBAR, files an FBAR with a material omission or misstatement, or does not make and retain records for interests in foreign financial accounts may be assessed a penalty not to exceed the greater of the amount equal to the account balance at the time of the violation (up to $100,000) or $25,000. ***(b)(2), (b)(7), (E)***.  Our premise was that the taxpayer’s failure to report the income generated from the undisclosed foreign account would assist the IRS in proving that the taxpayer willfully failed to file an FBAR.

Also, the value of these accounts at the end of the reportable year significantly exceeded $100,000, resulting in FBAR penalties of $100,000 each.  This was the best information available to us at the time of our review, and we used it as a starting point for our estimates.  ***(b)(2), (b)(7), (E)***

***(b)(2), (b)(5), (b)(7), (E)***

As previously stated in this report, ***(b)(2), (b)(5), (b)(7), (E)*** foreign source income data received under the AEIP is covered under the respective tax treaty that the U.S. enters into with each country. 

Most bilateral U.S. tax treaties that follow the U.S. model tax convention or that follow provisions of the Organization for Economic Co-Operation and Development (OECD) model tax convention restrict the use of the information exchanged for tax purposes.  Specifically, the information obtained under a tax treaty could be used only for purposes designated under U.S.C. Title 26, I.R.C., while the FBAR filing requirements and respective penalties are covered under U.S.C. Title 31, Money and Finance. 

In June 2004, the OECD revised the model tax treaty.[46] Optional language has been included for countries desiring to share information for nontax purposes.  The change provides that countries may use the information for other purposes, provided the information may be used for such purposes under the laws of both countries.  In the IRS’ situation, the use of tax treaty information for nontax purposes may need to be in compliance with IRS disclosure provisions.[47]  While the OECD model tax treaty is only a model,[48] it does signal a change in the use of tax treaty information.

A Contracting State[49] wishing to broaden the purposes for which it may use the information exchanged may do so by adding the following text to its treaty:  “Notwithstanding the foregoing, information received by a Contracting State may be used for other purposes when such information may be used for such other purposes under the laws of both States and the competent authority of the supplying State authorizes such use.”

***(b)(2), (b)(5), (b)(7), (E)***

 

Recommendations

***(b)(2), (b)(5), (b)(7), (E)*** 

Appendix I

 

 

Detailed Objective, Scope, and Methodology

 

Our overall objective was to determine whether compliance opportunities existed for using foreign source income data and Report of Foreign Bank and Financial Accounts (Form TD F 90-22.1) (referred to as FBAR)[52] data received as part of the Automatic Exchange of Information Program.[53]  To accomplish our objective, we:

I.    Determined the extent to which the information reported to the Internal Revenue Service (IRS) via foreign source income data was sufficient and accurate enough to be useful in compliance efforts.

A.    Determined the effect of matching foreign source income data and related IRS filing data by analyzing computer files containing all of the foreign source income documents the IRS received electronically for Tax Years (TY) 2000 and 2001.[54] 

B.     Using the TY 2001 data, selected a random statistically valid sample of ***(b)(2), (b)(7), (E)*** documents from a universe of ***(b)(2), (b)(7), (E)***documents using a confidence level of***(b)(2), (b)(7), (E)***and a precision level of ***(b)(2), (b)(7), (E)***.  We obtained guidance on our sampling methodology and projections from the IRS Statistics of Income Division.

C.     Using the Integrated Data Retrieval System[56] on the ***(b)(2), (b)(7), (E)*** documents in our sample, validated and perfected the Taxpayer Identification Numbers (TIN)[57] ***(b)(2), (b)(7), (E)***.

II.      Determined the extent to which the information reported on FBAR documents was sufficient and accurate enough to be useful in compliance efforts.

A.    Determined the effect of matching foreign source income data and related FBAR data to identify noncompliance with Bank Secrecy Act (BSA)[58] filing requirements.

1.      From the foreign source income database, selected a judgmental sample of ***(b)(2), (b)(7), (E)*** documents on which the recipient was an individual and received interest or dividend income of $5,000 or more (population of ***(b)(2), (b)(7), (E)***).  We chose documents with interest or dividend income of $5,000 or greater to assure the recipients would be subject to FBAR filing requirements, since $5,000 in interest and dividend income would indicate a principal balance of at least $10,000.

2.      Matched the sample of ***(b)(2), (b)(7), (E)*** documents against IRS computer files and tax returns containing FBAR data received in TYs 2000 through 2003 to determine whether a required FBAR was filed.

 

Appendix II

 

 

Major Contributors to This Report

 

Richard Dagliolo, Acting Assistant Inspector General for Audit (Small Business and Corporate Program)

Philip Shropshire, Director

Edmond G. Watt, Audit Manager

Michael Howard, Acting Audit Manager

Timothy F. Greiner, Senior Auditor

Frank Maletta, Auditor

Layne Powell, Information Technology Specialist

Jeffrey Williams, Information Technology Specialist

 

Appendix III

 

 

Report Distribution List

 

Commissioner  C

Office of the Commissioner – Attn:  Chief of Staff  C

Deputy Chief Financial Officer, Department of the Treasury

Commissioner, Large and Mid-Size Business Division  SE:LM

Commissioner, Small Business/Self-Employed Division  SE:S

Commissioner, Wage and Investment Division  SE:W

Director, Communications, Liaison, and Disclosure, Small Business/Self-Employed Division  SE:S:CLD

Director, International, Large and Mid-Size Business Division  SE:LM:I

Director, Collection Policy, Small Business/Self-Employed Division  SE:S:C:CP

Director, Reporting Compliance, Wage and Investment Division  SE:W:CP:RC

Audit Liaison:  Commissioner, Large and Mid-Size Business Division  SE:LM

 

Appendix IV

 

 

Outcome Measures

 

This appendix presents detailed information on the measurable impact that our recommended corrective actions will have on tax administration.  These benefits will be incorporated into our Semiannual Report to the Congress.

Type and Value of Outcome Measure:

  • ***(b)(2), (b)(5), (b)(7), (E)***(see page 5).

Methodology Used to Measure the Reported Benefit:

***(b)(2), (b)(5), (b)(7), (E)*** The TY 2001 foreign source income database included over ***(b)(2), (b)(7), (E)*** documents.  We selected a statistically valid sample of ***(b)(2), (b)(7), (E)***documents from the database.  ***(b)(2), (b)(7), (E)***We then converted the gross income paid from the foreign currency in which it was paid to United States (U.S.) dollars.

Next we determined whether the foreign source income was reported on the taxpayers’ respective U.S. Individual Income Tax Returns (Form 1040) ***(b)(2), (b)(5), (b)(7), (E)***

Type and Value of Outcome Measure:

  • ***(b)(2), (b)(5), (b)(7), (E)*** (see page 5).

Methodology Used to Measure the Reported Benefit:

The revenue protection figure is based on the premise that the IRS will find willful noncompliance (in those cases where the taxpayers did not report the foreign source income on their respective income tax returns) in failing to file required Reports of Foreign Bank and Financial Accounts (Form TD F 90-22.1) (referred to as FBAR).[61]  From the TY 2001 foreign source income database, we selected a judgmental sample of ***(b)(2), (b)(7), (E)***documents (cases) on which a taxpayer received income or dividend income of $5,000 or more (population of 32,711).  For the ***(b)(2), (b)(7), (E)***cases, we researched the Currency and Banking Retrieval System (CBRS)[62] ***(b)(2), (b)(5), (b)(7), (E)***

 

Appendix V

 

 

Management’s Response to the Draft Report

 

The response was removed due to its size.  To see the response, please go to the Adobe PDF version of the report on the TIGTA Public Web Page.



[1] An FBAR must be filed with the United States Department of the Treasury by any taxpayer who has a financial account with a value exceeding $10,000 in a foreign country.

[2] The AEIP is a program through which the IRS exchanges information with approximately 20 tax treaty countries.  The scope of this review was limited to electronic data.  The IRS also receives hundreds of thousands of paper information documents that were not included in this review.

[3] We use the term “resident” to include U.S. citizens and resident aliens.  Resident aliens are generally taxed in the same way as U.S. citizens.

[4] Department of Commerce – Bureau of Economic Analysis – News Release:  U.S. International Investment Position at Year end 2003 (dated June 30, 2004).  This news release also listed the U.S. holdings of foreign securities at $2.5 trillion.

[5] ***(b)(2), (b)(5), (b)(7), (E)***

[6] ***(b)(2), (b)(5), (b)(7), (E)***

[7] ***(b)(2), (b)(5), (b)(7), (E)***

[8] ***(b)(2), (b)(5), (b)(7), (E)***.

[9] Pub. L. No. 107-56 (2001).

[10] ***(b)(2), (b)(5), (b)(7), (E)***

[11] 26 U.S.C. (2004).

[12] 31 U.S.C. § 103 (2004).

[13] The CBRS is an online database that contains Bank Secrecy Act (Pub. L. No. 91-508, 84 Stat. 1114 to 1124 (1970) (codified as amended in scattered sections of 12 U.S.C., 15 U.S.C., and 31 U.S.C.)) information.

[14] The AUTOTIN Program is used to validate the TINs included on information documents.  It will also use a taxpayer’s name and address to identify the taxpayer’s TIN.

[15] 31 U.S.C. § 5321(a)(5).

[16] We use the term “resident” to include U.S. citizens and resident aliens.  Resident aliens are generally taxed in the same way as U.S. citizens.

[17] Department of Commerce – Bureau of Economic Analysis – News Release:  U.S. International Investment Position at Year end, 2003 (dated June 30, 2004).  This news release also listed the U.S. holdings of foreign securities at $2.5 trillion.

[18] The Organization for Economic Co-Operation and Development developed the standard format for the AEIP.  The scope of this review was limited to electronic data.  The IRS also receives hundreds of thousands of paper information documents that were not included in this review.

[19] ***(b)(2), (b)(5), (b)(7), (E)***

[20] Pub. L. No. 91-508, 84 Stat. 1114 to 1124 (1970) (codified as amended in scattered sections of 12 U.S.C., 15 U.S.C., and 31 U.S.C.)

[21] Financial interest in or a signature or other authority over a financial account in a foreign country, such as a bank, securities, or other type of financial account.

[22] Schedule B – Interest and Ordinary Dividends, Part III, Line 7a.

[23] House Committee on Government Operations:  Effectiveness of the IRS’s Income Information Document Matching Program (dated September 23, 1976).

[24] For both individuals and business entities.

[25] ***(b)(2), (b)(5), (b)(7), (E)***

[26] ***(b)(2), (b)(5), (b)(7), (E)***

[27] ***(b)(2), (b)(5), (b)(7), (E)***

[28] ***(b)(2), (b)(5), (b)(7), (E)***

[29] ***(b)(2), (b)(5), (b)(7), (E)***

[30] ***(b)(2), (b)(5), (b)(7), (E)***

[31] ***(b)(2), (b)(7), (E)***.

[32] ***(b)(2), (b)(7), (E)***

[33] ***(b)(2), (b)(7), (E)***

[34] ***(b)(2), (b)(7), (E)***

[35] ***(b)(2), (b)(7), (E)***

[36] ***(b)(2),  (b)(7), (E)***

[37] ***(b)(2), (b)(7), (E)***

[38] ***(b)(2), (b)(7), (E)***

[39] ***(b)(2), (b)(7), (E)***

[40] Pub. L. No. 107-56 (2001).

[41] The CBRS is an online database that contains BSA information.

[42]***(b)(2), (b)(5), (b)(7), (E)***

[43] Pub. L. No. 108-357, 118 Stat. 1418 (2004).

[44] 31 U.S.C § 5321(a)(5) 2004.

[45] 31 U.S.C. § 5321(a)(5).

[46] Centre for Tax Policy and Administration, Committee on Fiscal Affairs:  Approval of Revision of Article 26 and Commentary.  June 30th 2004 (CTPA/CFA (2004)39/REV1).

[47] 26 U.S.C. § 6103 (2004).

[48] ***(b)(2),  (b)(7), (E)***

[49] The OECD refers to a tax treaty country as a Contracting State.

[50] The process whereby criminals conceal illicitly acquired funds by converting them into seemingly legitimate income.

[51] ***(b)(2),  (b)(7), (E)***

[52] An FBAR must be filed with the United States Department of the Treasury by any taxpayer who has a financial account with a value exceeding $10,000 in a foreign country.

[53] This is a program though which the IRS exchanges information with approximately 20 tax treaty countries.

[54] Data for TYs 2001 and 2002 were the most current at the time of our review.

[55] ***(b)(2), (b)(7), (E)***

[56] The IRS computer system capable of retrieving or updating stored information; it works in conjunction with a taxpayer’s account records.

[57] A nine-digit number assigned to taxpayers for identification purposes.

[58] Pub. L. No. 91-508, 84 Stat. 1114 to 1124 (1970) (codified as amended in scattered sections of 12 U.S.C., 15 U.S.C., and 31 U.S.C.)  The BSA was enacted in 1970 and is one of the main Federal laws that require monitoring of financial information.

[59] A nine-digit number assigned to taxpayers for identification purposes. 

[60] The IRS computer system capable of retrieving or updating stored information; it works in conjunction with a taxpayer’s account records.

[61] An FBAR must be filed with the U.S. Department of the Treasury by any taxpayer who has a financial account with a value exceeding $10,000 in a foreign country.

[62] The CBRS is an online database that contains Bank Secrecy Act (Pub. L. No. 91-508, 84 Stat. 1114 to 1124 (1970) (codified as amended in scattered sections of 12 U.S.C., 15 U.S.C., and 31 U.S.C.)) information.

[63] Under new FBAR penalty provisions, taxpayers situated similar to those in our sample could be liable for an ***(b)(2), (b)(5), (b)(7), (E)***