Bittner v. United States
In brief
A nonwillful failure to report foreign accounts can bring one maximum $10,000 penalty per annual report, not one per account.
- Where it stands
- Decided
Decided 5-4 · February 28, 2023 · Opinion by Justice Gorsuch
- What it’s about
- Alexandru Bittner challenged a $2.72 million fine for failing to report his foreign bank accounts, arguing the penalty should be assessed per unfiled report rather than per unreported account.
- Who it affects
- People who unintentionally fail to file or properly complete a foreign-account report face a maximum penalty per annual form rather than a separate maximum penalty for every account. For someone with many accounts, that can greatly reduce the potential fine.
Summary: written with AI from the case record.
What it's about
The Supreme Court agreed, ruling that the Bank Secrecy Act's $10,000 maximum penalty for nonwillful violations applies on a per-report basis.
The case resolved how to count nonwillful violations of a federal law requiring annual reports of foreign bank accounts.
Question presented
Is a “violation” under the Bank Secrecy Act the failure to file an annual Report of Foreign Bank and Financial Accounts (no matter the number of foreign accounts), or is there a separate violation for each individual account that was not properly reported?
What the Court decided
Holding
The BSA’s $10,000 maximum penalty for the nonwillful failure to file a compliant report accrues on a per-report, not a per-account, basis. 19 F. 4th 734, reversed and remanded.
- Result
- Reversed
The vote
From the opinions
“The BSA’s $10,000 maximum penalty for the nonwillful failure to file a compliant report accrues on a per-report, not a per-account, basis.”
“The most natural reading of the statute establishes that each failure to report a qualifying foreign account constitutes a separate reporting violation, so the Government can levy penalties on a per-account basis.”
What's next
Lower courts must apply the per-report rule when resolving nonwillful Bank Secrecy Act reporting-penalty disputes. Federal agencies and affected account holders must calculate those penalties under that rule.
Documents
Docket activity
New analysis added
AI analysis generated: Impact Analysis
AI analysis generated: Opinion Summary
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AI analysis generated: Case Briefing
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AI analysis generated: Decision Record
Opinion added: Bittner
Opinion added: opinion
Brief added: Petition
Brief added: Questions Presented
More questions
- What did the Supreme Court rule in Bittner v. United States?
- The Court said the $10,000 maximum penalty for a nonwillful violation applies per annual report, not per unreported foreign account.
- Who won Bittner v. United States?
- Alexandru Bittner won. The Court agreed that the penalty should be counted by unfiled annual reports rather than individual accounts.
- What does Bittner mean for people with foreign accounts?
- People facing nonwillful reporting penalties may face lower maximum fines when a single annual report omitted multiple foreign accounts.
- Is the per-report penalty rule still the law after Bittner?
- Yes. The Court established that the Bank Secrecy Act's $10,000 maximum for nonwillful reporting failures accrues per report.
- What happens next after Bittner v. United States?
- The case returns to lower court for further proceedings. Courts and agencies must use the per-report approach for nonwillful penalties.
Sources
Primary materials plus reporting. Best-effort analysis: this explainer relies on a mix of primary materials and trusted secondary sources. Official filings and opinions remain authoritative.