Bittner v. United States
Issues
Does an individual commit a single violation or multiple violations under the Bank Secrecy Act when the individual fails to report multiple foreign accounts during a single reporting period?
This case asks the Supreme Court to decide an issue of statutory construction; specifically, on what basis should the Secretary of the Treasury evaluate taxpayer violations of the Bank Secrecy Act (“BSA”). The Bank Secrecy Act requires citizens with a financial interest in a foreign bank account to report that financial interest to the Commissioner of Internal Revenue for each year that the interest exists. Alexandru Bittner contends that evaluating violations under the Bank Secrecy Act on a per-form basis is consistent with the statute’s text, history, and purpose. The United States counters that the text of the Bank Secrecy Act clearly outlines that a violation occurs on a per-account basis, not a per-form basis, and that the statute’s history and purpose confirm this viewpoint. The outcome of this case has heavy implications for tax law, banking regulations, civil penalties for tax violations, and financial interests in foreign bank accounts.
Questions as Framed for the Court by the Parties
Whether a “violation” under the Bank Secrecy Act is the failure to file an annual Report of Foreign Bank and Financial Accounts (no matter the number of foreign accounts), or whether there is a separate violation for each individual account that was not properly reported.
Petitioner Alexandru Bittner is a dual citizen of Romania and the United States. United States v. Bittner, at 1. Bittner emigrated to the United States in 1982, where he obtained his American citizenship and lived until 1990, when he moved back to Romania. Id.
- Stephen J. Dunn, Supreme Court Grants Certiorari in Bittner, American Bar Association (Aug. 30, 2022).
- Nicholas R. Peterson, Supreme Court to Review Non-Willful FBAR Penalties, Steptoe (July 13, 2022).
- Dan Schweitzer, Supreme Court Report: Bittner v. United States, 21-1195, National Association of Attorneys General (June 30, 2022).