United States v. Sam Zimmerman

I. INTRODUCTION AND BACKGROUND

This case involves the failure to report an offshore bank account to the Internal Revenue Service (“IRS”). Any U.S. person having a financial interest in, or authority over, a foreign bank account must report that relationship, each year it exists, in a Report of Foreign Bank and Financial Accounts (“FBAR”). See U.S.C. § 5314; C.F.R. § 1010.350(a). The Secretary of the Treasury may impose civil penalties for a failure to file an FBAR. See 31 U.S.C. §§ 5321(a)(5)(A), (b)(2). Defendants Amy and Sam Zimmerman! are U.S. citizens who use U.S. passports exclusively. Dkt. 1, Complaint (“Compl.”) §§ 10-11. In 1994, Amy deposited about $300,000 into an account at Bank Leumi in Israel (“Leumi Account’). Id. §{ 14-15. Amy controlled the Leumi Account. Dkt. 27, Motion for Default Judgment (“Mot.) at 3. In 2006, 2007 and 2009 the Zimmermans filed FBARs for years 2004, 2006 and 2008, respectively, in which they reported the Leumi Account. Compl. §] 16-18. They closed the account in 2009. Id. § 19. Also in 1994, the Zimmermans, while traveling in Switzerland, established a foundation, …