Federal · Internal Revenue Service

Proposed FBAR penalty

Letter 3709 · Letter 3708

What it is: A proposed penalty for failing to file the Report of Foreign Bank and Financial Accounts, non-willful or willful, under Title 31 rather than the Internal Revenue Code. Letter 3709 proposes the penalty and offers an Appeals conference; Letter 3708 is the notice and demand after assessment.
The clock it starts: 30 days from the Letter 3709 to respond or request Appeals before assessment. After assessment the dispute moves to a refund or collection suit.
What a response has to establish: Reasonable cause for a non-willful penalty, the per-report (not per-account) computation for non-willful penalties, and, for a willful penalty, the facts on knowledge and recklessness.
Authority: 31 U.S.C. §5314
31 U.S.C. §5321
31 C.F.R. §1010.350
31 C.F.R. §1010.306
IRM 4.26.16

What CitedTax drafts for this notice

A pre-assessment response or Appeals request on the proposed penalty, with the willfulness and reasonable-cause analysis.

One credit. Upload the notice, state the firm's position and the facts, and the draft comes back in about thirty minutes with every claim graded against the cited text.

Notice response Pricing

Other federal notices

CP2000 Proposed changes from information-return matching
CP3219A Statutory notice of deficiency (90-day letter)
CP11 Math-error correction to the return
CP21A Changes made to the return
CP59 No return on file
CP2100 Payee name and TIN mismatch (backup withholding)

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