Hiding Swiss Bank Account From IRS Ruled ‘Willful’ on Appeal

A surgeon and his wife owe the US $1 million in penalties and interest for willfully failing to report their Swiss bank account to the IRS, the Second Circuit ruled Wednesday.

This is the first time that the US Court of Appeals for the Second Circuit has addressed the proof necessary to satisfy the Bank Secrecy Act’s willfulness requirement with regard to filing a Report of Foreign Bank and Financial Accounts, the court said. It followed the “uniform decisions of the circuit courts that have addressed the issue” in holding that “willfully” encompasses both intentional and reckless conduct.

Juan ...