If you failed to file FBARs for one or more tax years, you have several options for correcting your noncompliance. The best option for your situation will depend on many factors, and you should consult a tax attorney before choosing an offshore disclosure method.
If you’re having tax problems
Category: International Tax Blog
A failure to file FBARs and Form 8938 can result in numerous civil tax penalties. Criminal penalties are also a possibility, which could result in jail time.
U.S. law requires that all taxpayers pay taxes on any foreign income or assets they have. This extends to anyone who is required to file taxes in the United States; it is not limited to U.S. citizens. Many people are not aware of this and subsequently fail to file and pay taxes on their… Read more »
You have three major option for filing Foreign Bank Account Reports (FBARs) for previous tax years. The best option for you will depend on the specific facts of your case, such as: Whether you failed to report foreign income during the tax years in question. Whether your failure to file was willful or non-willful…. Read more »
If you had a financial interest in or signature authority over foreign accounts exceeding $10,000, you need to file a Foreign Bank Account Report (FBAR). An unfiled FBAR can lead to a $10,000 penalty for non-willful violations and much higher penalties for willful violations.
If you move overseas to retire or for other reasons, you’ll still need to stay on top of your U.S. tax obligations. That’s because the United States uses a citizenship-based taxation regime, unlike some other countries that tax income based on where it’s earned or where you live. Be aware of the following tax issues… Read more »
There are almost 400,000 people who were born in a different country across Macomb, Oakland, Washtenaw, and Wayne Counties. Detroit has welcomed people from all over the world throughout its history. People are coming to enjoy the economic opportunity that only the Motor City provides. But the situation is not all rosy. Tax laws here… Read more »
The United States May Be Forcing Corporations to Foreign Tax Havens The United States loses a huge amount in taxes every year due to companies like Apple Computer seeking a foreign tax haven. In 2013, a report from the Senate Permanent Subcommittee on Investigations stated that Apple, which currently has a remarkable $230 billion in cash, was… Read more »
FATCA Letters Don’t Discriminate At only 8 months old, Canadian-American Baby Elle has had to learn the hard way just how unforgiving the American global tax code system can be to those living/working outside the U.S. Less than a year old, and Baby Elle has already received a Foreign Account Tax Compliance ACT (FATCA) letter regarding… Read more »
As a general rule, non-US retirement plans are tricky for US citizens. And you won’t find a trickier example than an Australian superannuation. If you participate in one already, in this article I’ll give you a few friendly suggestions regarding this unfriendly subject. But first, the two big reasons that superannuations are so tricky in… Read more »