On October 28, the IRS revised Internal Revenue Manual 8.11.6 regarding penalties applicable for failure to file a Report of Foreign Bank and Financial Accounts ("FBAR").1 The new provisions address electronic FBAR filing, which became mandatory on July 1, 2013, and explain when Fast Track Settlement and Fast Track Mediation are available. Under the new provisions, pre-assessed FBAR penalties are eligible for Fast Track Settlement only if the FBAR 30-day letter, Letter 3709, has not been issued to the taxpayer. The revised manual also provides that pre-assessed FBAR penalties are eligible for Fast Track Mediation. The new provisions clarify when Alternative Dispute Resolution ("ADR") rights are not available for FBAR cases: post-assessed FBAR penalties do not have ADR rights. In addition to referencing interest accrual on, and joint and several liability for, FBAR penalties, the new provisions change the time for completing post assessed FBAR cases from 60 days to 120 days.
Footnote
1 I.R.M. 8.11.6.
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