District Court denies IRS maximum FBAR penalty

Arthur Bedrosian, chief executive officer of Lannett Company, Inc. (LCI), has prevailed in his lawsuit with the IRS.

Bedrosian filed a lawsuit against the IRS, after the IRS claimed Bedrosian failed to properly and timely report a foreign bank account, which he opened in 1973.  The IRS filed a counterclaim, seeking payment of a penalty, plus interest totaling $1,007,346.  After a one day trial, Senior United States District Judge for the Eastern District of Pennsylvania, Michael M. Baylson, found that Bedrosian was credible and that he did not willfully fail to identify one of two foreign accounts on a Report of Foreign Bank and Financial Accounts, which he filed in 2008.

The Court also found that the IRS had illegally extracted the sum of $9,758 from Bedrosian.  The Court thus entered judgment in favor of Bedrosian and against the IRS in the amount of $9,758 and in favor of Bedrosian and against the IRS on the IRS’ counterclaim.

See more at: https://finance.yahoo.com/news/arthur-bedrosian-lannett-ceo-prevails-105300701.html