Excessiveness of CEO’s $2.3 Million Tax Penalty Must be Reviewed

The Eleventh Circuit said Thursday that a Georgia sporting goods executive willfully failed to file accurate Reports of Foreign Bank and Financial Accounts, but remanded the case to determine whether the $2.3 million penalty is constitutionally excessive.

The lower court was incorrect in finding that FBAR fines aren’t subject to the Eighth Amendment’s Excessive Fines Clause, the US Court of Appeals for the Eleventh Circuit said. The appeals court held in US v. Schwarzbaum that the Eighth Amendment applies to FBAR penalties, but that decision was reached after the district court entered its order in this case.

Judge Charles ...