FBAR Penalty of $438,000 Not Unconstitutionally Excessive Fine

A Turkish-American dual citizen failed to show that his nearly $438,000 fine for willfully failing to report his Turkish bank accounts from 2013 to 2017 was an Eighth Amendment violation.

Tuncay Saydam asked the US District Court for the Northern District of California to reduce his penalties for failing to file an annual Report of Foreign Bank and Financial Accounts, arguing that they’re an unconstitutionally excessive fine.

“The fact that the FBAR penalty is significantly reduced in cases where the defendant acted non-willfully suggests that the penalty has a punitive aspect,” Magistrate Judge Donna M. Ryu said Tuesday.

But although ...