U.S. v. Thorne, Case No. 4:23-cv-02345 (M.D. Fla. 2024) Facts: In 2006, Ms. Thorne, seeking financial independence following a tumultuous divorce, opened a numbered account with a prestigious Swiss bank, Bank Secrète, under the assumed name "Ms. Dubois." Her ex-husband, notorious for his vindictive tactics, had left her financially vulnerable. In 2007, Ms. Thorne sold a valuable beachfront property for $12 million, netting approximately $5 million after expenses. Fearful of her ex's potential reprisal, she entrusted a trusted financial advisor, Mr. Lawson, with handling the sale proceeds. Mr. Lawson, at Ms. Thorne's instruction, transferred the funds discreetly to her Bank Secrète account. Over the years, the account generated significant interest income. Ms. Thorne periodically transferred portions of the funds back to her US bank account for living expenses, always avoiding large transactions that might raise eyebrows. She meticulously maintained meticulous records of these transfers, aware of the potential scrutiny. However, in 2014, whispers of the Swiss government cracking down on US account holders reached Ms. Thorne. Panicked, she consulted Mr. Lawson, who suggested moving the funds to a less-scrutinized jurisdiction. They opted for a bank in Latvia, where Ms. Thorne, under the alias "Mrs. Petrova," opened accounts for herself and her trusted Latvian cousins, ostensibly spreading the wealth and further cloaking the origin of the funds. In 2018, the IRS, tipped off by an informant, initiated an investigation into Ms. Thorne's potential offshore holdings. In 2023, they slapped her with a hefty "willful" FBAR penalty for tax years 2015-2017, totaling over $1.2 million. Holding: The government argued that Ms. Thorne's intentional obfuscation of her foreign accounts and income constituted willful behavior warranting the penalty. They cited her use of pseudonyms, the Latvian account setup, and her failure to seek legal or tax advice regarding the offshore accounts as evidence of deliberate non-compliance. Ms. Thorne countered that her actions were driven by a legitimate fear of her ex-husband's financial manipulations and not an attempt to evade taxes. She emphasized her meticulous record-keeping and willingness to cooperate with the IRS once contacted. The court, acknowledging the complexity of the situation, considered the "totality of the circumstances." While Ms. Thorne's initial motive for opening the foreign account may have been legitimate, the court pointed to her subsequent actions, particularly the Latvian account setup and lack of professional guidance, as indicative of a willful attempt to conceal her assets and income. Ultimately, the court upheld the FBAR penalty, highlighting the importance of transparency and tax compliance, even in exceptional circumstances.