Complaint 

(Case No. ) 

1 U.S. DEPARTMENT OF JUSTICE 

Tax Division, Western Region 

P.O. Box 683 

Washington, D.C. 20044 

Telephone: 202-514-1170 

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RICHARD E. ZUCKERMAN 

Principal Deputy Assistant Attorney General 

PAUL T. BUTLER (MD Bar No. 9406230037) 

Trial Attorney, Tax Division 

U.S. Department of Justice 

P.O. Box 683 

Washington, D.C. 20044 

202-514-1170 (v) 

202-307-0054 (f) 

Paul.T.Butler@usdoj.gov 

Of Counsel: 

ELIZABETH A. STRANGE 

First Assistant United States Attorney 

IN THE UNITED STATES DISTRICT COURT 

 FOR THE DISTRICT OF ARIZONA 

UNITED STATES OF AMERICA, ) 

 ) 

 Plaintiff, ) 

 ) 

 v. ) 

 ) 

DIANE A. MASLOWSKI ) 

 ) 

 Defendant. ) 

____________________________________) 

Case No. 

COMPLAINT 

Plaintiff, the United States of America brings this action to collect from the 

defendant outstanding civil penalties (31 U.S.C. § 5321(a)(5)), commonly known as 

FBAR penalties, which were assessed against Diane A. Maslowski, for her failure to 

timely report her financial interest in, and/or her signatory or other authority over, foreign 

bank accounts for the 2006, 2007 and 2008 calendar years, as required by 31 U.S.C. 

§ 5314 and its implementing regulations, having a total balance due to the United States 

Case 2:18-cv-00434-GMS Document 1 Filed 02/07/18 Page 1 of 9
Complaint 

(Case No. ) 

2 U.S. DEPARTMENT OF JUSTICE 

Tax Division, Western Region 

P.O. Box 683 

Washington, D.C. 20044 

Telephone: 202-514-1170 

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of America of $12,410.82 as of February 1, 2018 plus all associated penalties and 

interest. In support of this action, the United States alleges as follows: 

Jurisdiction and Venue 

1. This Court has jurisdiction under 28 U.S.C. §§ 1331, 1345, and 1355(a). 

2. At all times relevant to the matters at issue, Defendant Diane A. Maslowski 

(“Maslowski”) was a United States citizen and remains a United States 

citizen. 

3. Maslowski is currently a resident of Scottsdale, Arizona. 

4. Venue is proper under 28 U.S.C. § 1391. 

5. The United States of America brings this action pursuant to the 

authorization of the Secretary of the Treasury (see 31 U.S.C. 

§ 3711(g)(4)(C)) and at the direction of the Attorney General of the United 

States. 

6. This civil action to collect the FBAR Penalty, and the associated penalties 

and interest, is timely under 31 U.S.C. § 5321(b)(2), because it is filed 

within two years of the date on which the 2006 FBAR Penalty, 2007 FBAR 

Penalty, and the 2008 FBAR Penalty were assessed, February 29, 2016. 

Background Regarding Diane A. Maslowski’s Interests in Foreign Accounts 

7. Maslowski was born Diane A. Van Hyfte in the state of Illinois in 1966 and 

married Edmund J. Maslowski (“Edmund”) in 1998. 

Case 2:18-cv-00434-GMS Document 1 Filed 02/07/18 Page 2 of 9
Complaint 

(Case No. ) 

3 U.S. DEPARTMENT OF JUSTICE 

Tax Division, Western Region 

P.O. Box 683 

Washington, D.C. 20044 

Telephone: 202-514-1170 

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8. Maslowski divorced Edmund in 2010. 

9. On or about September 1, 1994, Maslowski’s former husband, Edmund, 

opened a “numbered account” with an account number ending in 0563 by 

signing account opening documents at the Hong Kong office of the Swiss 

Bank Corporation located in Zurich, Switzerland. 

10. Amongst the account opening documents signed by Edmund on or about 

September 1, 1994, were: an account application including instructions to 

Swiss Bank Corporation to retain at the bank all correspondence related to 

the account number ending in 0563; a form identifying Edmund as the 

beneficial owner of the account ending in 0563; a Charge/Declaration of 

Pledge form acknowledging that all disputes related to the account ending 

in 0563 would be governed by and decided under Swiss law; and, an 

agreement regarding Margins for Forward/Futures Transactions indicating 

that the venue for performance of such agreement, and any court 

proceedings under the agreement, would be Zurich, Switzerland. 

11. During the years 1997-1998 Swiss Bank Corporation and Union Bank of 

Switzerland merged to become UBS in Zurich, Switzerland and the account 

ending in 0563 (“the UBS account”) continued to be maintained and 

serviced with the same account number by the resulting UBS entity. 

12. On or about September 5, 2000, during the course of her marriage to 

Edmund, Maslowski signed a UBS General Power of Attorney form, which 

was also signed by her former husband, which gave her unlimited power of 

Case 2:18-cv-00434-GMS Document 1 Filed 02/07/18 Page 3 of 9
Complaint 

(Case No. ) 

4 U.S. DEPARTMENT OF JUSTICE 

Tax Division, Western Region 

P.O. Box 683 

Washington, D.C. 20044 

Telephone: 202-514-1170 

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attorney over the UBS account including, but not limited to full signatory 

authority over the account. 

13. Maslowski has never filed an FBAR report disclosing her ownership 

interest in, nor signatory (or any other) authority over, the UBS account. 

14. Throughout calendar years 2006, 2007, and 2008 Maslowski was a United 

States citizen, resided within the United States, and was otherwise subject 

to the jurisdiction of the United States within the meaning of 31 C.F.R. 

§ 103.241

. 

15. Throughout calendar years 2006, 2007, and 2008 the UBS account was a 

bank account in a foreign country. 

16. From September of 2000 and throughout calendar year 2008, Maslowski 

had signatory authority over, and ownership interests in, the UBS account 

within the meaning of 31 C.F.R. § 103.24. 

17. From September of 2000 throughout calendar year 2008, Maslowski was 

aware of her ownership interest and signatory authority over the UBS 

account. 

 

1

 Please note that the Regulations implementing the FBAR statute, 31 USC § 5314, were 

renumbered effective March 28, 2011 with respect to all reports due for foreign financial 

accounts maintained in calendar year 2010 and later. The updated regulations may be 

found at 31 CFR §§ 1010.300 et. seq. Prior to renumbering, the regulations effective for 

the years at issue herein were found at 31 C.F.R. § 103.24, 31 C.F.R. § 103.27, and 31 

C.F.R. § 103.32. 

Case 2:18-cv-00434-GMS Document 1 Filed 02/07/18 Page 4 of 9
Complaint 

(Case No. ) 

5 U.S. DEPARTMENT OF JUSTICE 

Tax Division, Western Region 

P.O. Box 683 

Washington, D.C. 20044 

Telephone: 202-514-1170 

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Claim for Relief: Judgment for Civil Penalty (31 U.S.C. § 5321(a)(5)) 

Liability for the Civil Penalty for 2006 

18. The United States incorporates the allegations in paragraphs 1 through 17 

as if fully set forth herein. 

19. During calendar year 2006, the aggregate maximum account balance in the 

UBS account exceeded $900,000.00. 

20. On all U.S. federal income tax returns filed by Maslowski through 2006, 

she failed to report any income from the UBS account and on Schedule B 

of such returns reported that she had no interest in, nor any authority over, 

any foreign financial accounts. 

21. Maslowski failed to timely file an FBAR for the year 2006 disclosing her 

ownership interests and signature authority over the UBS account despite 

being required to do so by 31 U.S.C. § 5314 and 31 C.F.R. § 103.27(c). 

Liability for the Civil Penalty for 2007 

22. The United States incorporates the allegations in paragraphs 1 through 21 

as if fully set forth herein. 

23. During calendar year 2007, the aggregate maximum account balance in the 

UBS account exceeded $400,000.00. 

24. On the U.S. federal income tax return filed by Maslowski for 2007, she 

failed to report any income from the UBS account and on Schedule B of 

Case 2:18-cv-00434-GMS Document 1 Filed 02/07/18 Page 5 of 9
Complaint 

(Case No. ) 

6 U.S. DEPARTMENT OF JUSTICE 

Tax Division, Western Region 

P.O. Box 683 

Washington, D.C. 20044 

Telephone: 202-514-1170 

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such return reported that she had no interest in, nor any authority over, any 

foreign financial accounts. 

25. Maslowski failed to timely file an FBAR for the year 2007 disclosing her 

ownership interest and signature authority over the UBS account despite 

being required to do so by 31 U.S.C. § 5314 and 31 C.F.R. § 103.27(c). 

Liability for the Civil Penalty for 2008 

26. The United States incorporates the allegations in paragraphs 1 through 25 

as if fully set forth herein. 

27. During calendar year 2008, the aggregate maximum account balance in the 

UBS account exceeded $250,000.00. 

28. On the U.S. federal income tax return filed by Maslowski for 2008, she 

failed to report any income from the UBS account and on Schedule B of 

such return reported that she had no interest in, nor any authority over, any 

foreign financial accounts. 

29. Maslowski failed to timely file an FBAR for the year 2008 disclosing her 

ownership interest and signature authority over the UBS account despite 

being required to do so by 31 U.S.C. § 5314 and 31 C.F.R. § 103.27(c). 

Case 2:18-cv-00434-GMS Document 1 Filed 02/07/18 Page 6 of 9
Complaint 

(Case No. ) 

7 U.S. DEPARTMENT OF JUSTICE 

Tax Division, Western Region 

P.O. Box 683 

Washington, D.C. 20044 

Telephone: 202-514-1170 

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Assessment and Collection of the Civil Penalties for 2006, 2007, and 2008 

30. On April 18, 2013, January 15, 2014, January 19, 2015, July 6, 2015, and 

November 19, 2015 Maslowski consented, in writing, to extensions of the 

time within which to assess penalties under 31 U.S.C. § 5321. 

31. On February 29, 2016, in accordance with 31 U.S.C. § 5321(a)(5)(C)(i), a 

delegate of the Secretary of the Treasury timely assessed a civil penalty 

against Maslowski, in the amount of $10,000.00 for each of the years 2006, 

2007, and 2008 due to the failure of Maslowski to timely and properly 

disclose the UBS account. 

32. A delegate of the Secretary of the Treasury sent Maslowski notice of the 

assessment of the 2006, 2007 and 2008 FBAR Penalties and demand for 

payment. 

Additional Amounts Due and Owing to the United States 

33. The FBAR penalties described in paragraph 31 above were assessed 

pursuant to 31 U.S.C. § 5321(a)(5)(b)(i), which imposes a penalty not to 

exceed $10,000 for each violation of the FBAR filings requirements that is 

not due to a willful violation of 31 U.S.C. § 5321. 

34. Maslowski has not fully paid the outstanding FBAR penalties described in 

paragraph 31. 

35. Pursuant to 31 U.S.C. § 3717(a)(1), the United States is entitled to recover 

prejudgment interest accrued on Maslowski’s unpaid penalties. In addition, 

Case 2:18-cv-00434-GMS Document 1 Filed 02/07/18 Page 7 of 9
Complaint 

(Case No. ) 

8 U.S. DEPARTMENT OF JUSTICE 

Tax Division, Western Region 

P.O. Box 683 

Washington, D.C. 20044 

Telephone: 202-514-1170 

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pursuant to 31 U.S.C. § 3717(e)(2), the United States is entitled to recover a 

penalty for Maslowski’s failure to pay a lawful debt owed to the United 

States. Furthermore, pursuant to 31 U.S.C. § 3717(e)(1), the United States 

is entitled to recover charges assessed against Maslowski to cover 

collection-related costs of processing and handling her outstanding FBAR 

liabilities. 

36. As of February 1, 2018, the outstanding balance owed by Maslowski is 

$12,410.82. This amount includes assessed but unpaid FBAR penalties, as 

well as accruals pursuant to 31 U.S.C. § 3717 (i.e. prejudgment interest, 

failure to pay penalties, and collection-related costs). 

37. In addition to the $12,410.82, the United States is entitled to recover the 

additional penalty, interest, and any collection-related costs that accrue on 

that amount. 

WHEREFORE, the plaintiff United States of America demands that this Court: 

(a) Enter judgment in favor of the plaintiff United States of America and against 

the defendant, for the FBAR penalties assessed against Diane A. Maslowski with 

regard to the 2006, 2007, and 2008 reporting periods, in the total amount of 

$12,410.82 as of February 1, 2018, as well as associated penalties and interest, 

plus statutory accruals until fully paid; and, 

Case 2:18-cv-00434-GMS Document 1 Filed 02/07/18 Page 8 of 9
Complaint 

(Case No. ) 

9 U.S. DEPARTMENT OF JUSTICE 

Tax Division, Western Region 

P.O. Box 683 

Washington, D.C. 20044 

Telephone: 202-514-1170 

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(b) Award the United States of America its costs, and such further relief as the 

Court deems just and proper. 

Dated: February 7, 2018 

Respectfully submitted, 

RICHARD E. ZUCKERMAN 

Principal Deputy Assistant Attorney 

General 

/s/ Paul T. Butler_______________ 

PAUL T. BUTLER (MD Bar. 

9406230037) 

Trial Attorney, Tax Division 

U.S. Department of Justice 

P.O. Box 683 

Washington, D.C. 20044 

202-514-1170 (v) 

202-307-0054 (f) 

Paul.T.Butler@usdoj.gov

Of Counsel: 

ELIZABETH A. STRANGE 

First Assistant United States Attorney 

Case 2:18-cv-00434-GMS Document 1 Filed 02/07/18 Page 9 of 9
 	


	


	


	
 

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