Document Type
Article
Abstract
A sharp disagreement has emerged among federal circuit courts regarding the application of the Eighth Amendment’s Excessive Fines Clause to penalties for failing to file a Foreign Bank Account Report (FBAR). This has created legal uncertainty for individuals with foreign financial interests. The resulting circuit split leads to disparate outcomes, where the constitutionality of a penalty is dependent on the jurisdiction in which it is challenged.
The divergence in judicial opinion centers on a fundamental question: Whether the substantial civil penalties for willful FBAR violations constitute a punitive “fine” or a remedial measure intended to compensate the government. The statutory penalty structure, which can result in a penalty that is exponentially greater than an account’s balance, brings the issue of gross disproportionality into sharp focus. This Note analyzes the conflicting legal frameworks used by the courts to address this constitutional question and ultimately suggests a resolution to avoid similar questions in the future.
Recommended Citation
Tessa B. Walter,
Penalty Box: The Eighth Amendment’s Role in the FBAR Penalties Game,
42
Ga. St. U. L. Rev.
509
(2026).
Available at:
https://readingroom.law.gsu.edu/gsulr/vol42/iss2/11