American Federal Tax Reports - U.S. v. Pomerantz, 119 AFTR 2d 2017-2113 - Decision on FBAR penalties

Sep 19, 2026

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A U.S. District Court decision addresses a motion to dismiss and an alternative motion to transfer venue in a case between the United States (plaintiff) and Jeffrey P. Pomerantz (defendant). The dispute concerns civil penalties tied to alleged failures to disclose foreign bank accounts for tax years 2007–2009 and FBAR-related reporting requirements. The court denies improper venue challenges, denies transfer, and grants dismissal for failure to state a claim with leave to amend, while finding gaps in proof of actual or constructive knowledge for personal accounts.

LanguageEnglish

CategoryLetters

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Pages12

Reading Time4 min

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Case Information

Headnote

Opinion

Introduction

Background

Analysis

Venue

06/08/2017 American Federal Tax Reports U .S . v . POMERANTZ, Cite as 119 AFTR 2d 2017-2113, Code Sec(s) 7403; 6011; 7403; 6011, (DC WA), 06/08/2017 UNITED STATES OF AMERICA, PLAINTIFF v . Jeffrey P . POMERANTZ, DEFENDANT . Case Information: [pg. 2017-2113] Code Sec(s): 7403; 6011, 7403; 6011 Court Name: U .S . District Court, Western Dist . of Washington, Docket No . : CASE NO . C16-0689JLR, Date Decided: 06/08/2017 . Prior History: Earlier proceeding at (2017, DC WA) 119 AFTR 2d 2017-1154 . Tax Year(s): Years 2007, 2008, 2009. Disposition: Decision for Taxpayer in part . HEADNOTE 1. Collection actions—venue—report of foreign bank and financial accounts—penalties. Pro se Canadian resident/dual U .S.-Canadian citizen was denied motion to dismiss for improper venue govt . 's suit to collect FBAR penalties: venue was proper in any U .S . district since taxpayer wasn't U .S . resident . His alternative motion to transfer to district in which his counsel was admitted to practice was also denied where although neither assessment nor related hearings occurred in local district, govt . 's choice of, and parties' contacts with, instant forum weighed against transfer . Reference(s): ¶ 74,035.01(105) Code Sec . 7403;Code Sec . 6011 2. Collection actions—assessments reduced to judgment—report of foreign bank and financial accounts—penalties—willfulness . Govt . 's complaint to reduce assessments to judgment for pro se Canadian resident/dual U .S.-Canadian citizen's FBAR penalties was dismissed: although govt . established via well pleaded allegations that taxpayer had financial interests in both his personal foreign accounts and others that were later opened in name of shell co . , and although those allegations also supported inference that taxpayer knew of reporting requirements at time he created shell co . accounts, govt . failed to show that taxpayer had actual or constructive knowledge of reporting requirements as related to his personal accounts . Notably, govt . didn't allege that taxpayer filled out Schedule B or was otherwise aware of its contents and instructions regarding FBAR reporting requirement for his personal accounts . And because amount of penalty relating to those accounts couldn't be disaggregated from amount of penalty relating to shell co . accounts, suit had to be dismissed in its entirety. But, govt . was given leave to amend . Reference(s): ¶ 74,035.01(30);¶ 60,115.01(5) Code Sec . 7403;Code Sec . 6011 OPINION UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON, ORDER Judge: JAMES L . ROBART United States District Judge I . INTRODUCTION Before the court is Defendant Jeffrey P . Pomerantz's motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(3) for improper venue and Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim . (Mot . (Dkt . \# 9) . ) In the alternative, Mr . Pomerantz moves to transfer venue to the United States District Court for the District of Columbia pursuant to 28 U .S .C . § 1404(a) . (Id. ) Plaintiff United States of America (“the Government”) opposes Mr . Pomerantz's motion . (Resp. (Dkt . \# 11) . ) Mr . Pomerantz also provides a declaration, which the court considers when addressing the issues relating to venue . (Pomerantz Decl . (Dkt . \# 13-1) . ) The court has considered the [pg. 2017-2114] parties' submissions, the relevant portions of the record, and the applicable law . Considering itself fully advised,1 the court DENIES the motion to transfer and GRANTS the motion to dismiss for failure to state a claim with leave to amend . II . BACKGROUND On May 13, 2016, the Government filed this suit to reduce to judgment civil penalties assessed against Mr . Pomerantz for his alleged failure to disclose foreign bank accounts in his 2007 through 2009 annual taxes . (Compl. (Dkt . \# 1) at 2 . ) When the Government filed its complaint, the alleged civil penalties and interest totaled $860,300 .35 . (I

FAQs

Why did the court deny the motion to dismiss for improper venue?

The court held venue was proper in any U.S. district because the defendant was not a U.S. resident. The improper-venue motion under Rule 12(b)(3) was therefore denied.

What was the outcome on the motion to transfer venue?

The court denied transfer to the District of Columbia. Although the defendant argued his counsel of choice was admitted there, the court found the relevant forum considerations weighed against transfer.

What did the court decide regarding the FBAR-related penalties claim?

The court granted dismissal for failure to state a claim, but with leave to amend. The government did not sufficiently allege or prove the defendant’s actual or constructive knowledge of reporting requirements for his personal accounts, and the penalty amounts could not be disaggregated from amounts related to shell-company accounts.

Sep 19, 2026

Upload by James