a.Mr. Zwerner voluntarily came forward and disclosed his noncompliance to the IRS, and filed corrective returns and paid late taxes and interest, before the IRS contacted him or any bank provided his account information to the U.S.;
b. When the official OVDI program came into being, Mr. Zwerner sought to gain entry to it (but was denied entry);
c. The account predated the FBAR filing requirement;
d. It is not clear whether Mr. Zwerner knew of the FBAR filing requirement at the time the original filings were due;
e. The IRS is seeking penalties worse than those provided to similarly situated taxpayers who entered the OVDI at a later date;
f. The imposition of multiple year penalties is highly unusual, and rarely sought even for criminal violations;
g. There are allegations of improprieties by the agent in its handling of the matter; and
h. Tax fraud was not found.
a. Mr. Zwerner did not disclose the existence of the accounts to his tax preparer, even though the questionnaire asked the question about the accounts (although Mr. Zwerner contends he thought he was answering the question correctly because the accounts were in the name of a foundation and not in his individual name);
b. Mr. Zwerner did not report the income from the accounts when it was earned;
c. Mr. Zwerner took steps to affirmatively hide the existence of the account (although not necessarily for tax avoidance purposes);
d. Mr. Zwerner signed a statement that arguably admitted he intentionally did not file or disclose (although Mr. Zwerner contends that the statement does not make such an admission, and that the statement was prepared by the IRS agent and signed by Mr. Zwerner on the false promise that it was needed to obtain a reduced penalty).