Eleventh Circuit affirms Tax Court lacks jurisdiction over FBAR penalty collection
Jenner v. Commissioner, No. 25-10014, 2025 BL 438147. Court Opinion.
FBAR penalties are not taxes. Taxpayers cannot use the Tax Court collection due process procedures to challenge them.
Holding
The Eleventh Circuit affirmed the Tax Court’s dismissal for lack of jurisdiction. The Tax Court has no authority to review FBAR penalties or administrative offsets used to collect them.
Why It Matters
FBAR penalties arise under Title 31, not the Internal Revenue Code.
Tax Court jurisdiction extends only to matters expressly granted by Title 26.
Collection due process hearings under §6330 apply only to unpaid taxes, not civil penalties under the Bank Secrecy Act.
Taxpayers challenging FBAR penalties must go to the U.S. district court or the Court of Federal Claims.
Key Facts
The IRS assessed FBAR penalties against Stephen and Judy Jenner for failing to report foreign bank accounts from 2005 through 2009.
Treasury’s Bureau of the Fiscal Service began collecting the penalties by offsetting up to 15 percent of their Social Security benefits.
The Jenners requested a collection…
