Bittner, the Bank Secrecy Act, and the Need for Change
pa href=https://www.cato.org/people/nicholas-anthony hreflang=enNicholas Anthony/a
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pIn the emWall Street Journal/em last week, Inbsp;had anbsp;a href=https://www.wsj.com/articles/irs-foreign-bank-account-registration-fbar-huge-fines-honest-mistakes-11667513644letter to the editor/a published regarding emBittner v. United States/em. As a href=https://www.wsj.com/articles/irs-eighth-amendment-tax-code-bittner-supreme-court-penalty-nonwillful-filing-mistake-fbar-foreign-account-11667321243Travis Nix and Tyler Martinez/a explained in the article Inbsp;had responded to:/p
blockquotepAlexandru Bittner, anbsp;Romanian‐American dual citizen, [mistakenly] failed to file five foreign bank account reports, or FBARs, with the IRS while living in Romania between 2007 and 2011. Taxpayers fill out annual FBAR forms if they have “foreign financial accounts exceeding $10,000.” When Mr. Bittner moved back to the U.S., he discovered this responsibility and had his certified public accountant file these forms to the IRS. The IRS responded by imposing a $2.72 million penalty even though there were no allegations of tax fraud or any additional taxes owed./p
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pWhat the Supreme Court decides to do is yet to be seen, but Congress should also be taking notice. Americans across the country, and across the world, are recognizing now more than ever how the Bank Secrecy Act regime (the regime responsible for FBARs, suspicious activity reports (SARs), and currency transaction reports (CTRs)) treats citizens as suspicious until proven innocent. More so, Americans are recognizing just how dismal financial privacy is in the United States./p
pIt’s time for anbsp;a href=https://www.cato.org/sound-financial-policychange/a./p
pemFor those interested in learning more, here are anbsp;few resources regarding the Bank Secrecy Act and how Americans have their financial activity surveilled:/em/p
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lia href=https://www.cato.org/policy-analysis/revising-bank-secrecy-act-protect-privacy-deter-criminalsRevising the Bank Secrecy Act to Protect Privacy and Deter Criminals/a/li
lia href=https://www.cato.org/commentary/treasury-doj-seek-greater-financial-surveillance-around-cryptocurrencyTreasury and DOJ Seek Greater Financial Surveillance around Cryptocurrency/a/li
lia href=https://www.cato.org/blog/how-inflation-erodes-financial-privacyHow Inflation Erodes Financial Privacy/a/li
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