Coming out of the Dark - Episode 3: FBAR and Form 8938 Penalties

In the latest installment of his compliance series, Matt Eddleman breaks down the critical mechanics of foreign asset reporting. This session provides a practical roadmap for identifying FinCEN Form 114 (FBAR) and IRS Form 8938 thresholds, calculating post-Bittner inflation-adjusted penalties, and defending against willful or reckless disregard classifications. Attendees will gain actionable insights on navigating current IRS remediation channels (including the SFOP, SDOP, and VDP), adapting to the recent 2026 removal of the DFSP webpage, and leveraging the Schwarzbaum Eighth Amendment holding to mitigate client exposure.

• Identify the filing thresholds, deadlines, and statutory basis for FinCEN Form 114 (FBAR) and IRS Form 8938.
• Calculate civil penalty exposure for non-willful and willful FBAR violations under current inflation-adjusted maximums and the per-report standard of Bittner v. United States.
• Distinguish non-willful conduct from willful or reckless disregard, and assess the sufficiency of a reasonable-cause or non-willfulness certification.
• Evaluate remediation options — SFOP, SDOP, DFSP, DIIRSP, and the Voluntary Disclosure Practice — and select the program appropriate to a client's facts.
• Apply recent regulatory developments, including the 2026 removal of the DFSP webpage and the Schwarzbaum Eighth Amendment holding, to current client advisement.