Taxpayers who have foreign accounts or interests that exceed $10,000 at any point during the year must submit a Foreign Ban Account Report (FBAR) through the Financial Crimes Enforcement Network (FinCEN) website. This notifies he U.S. Treasury Department of the accounts.
If you’re having tax problems
Do you own – or have interest in – foreign financial accounts? At any point in the past year, did the balance exceed $10,000? If so, you must file a Foreign Bank Account Report (FBAR). This form alerts the Financial Crimes Enforcement Network (FinCEN) and the U.S. Treasury Department to the accounts.
If you have overseas banking accounts, it is important to understand and if you are required to declare these accounts, and if you are, what IRS forms you need to submit.
Do you hold overseas banking accounts? Do your foreign accounts exceed $10,000? Have you failed to disclose foreign holdings to the IRS? If you answered “yes” to any of these questions, you should seek the advice of a tax attorney to help you navigate the Report of Foreign Bank and Financial Accounts (FBAR) laws. Otherwise,… Read more »
If you have money in foreign bank accounts, you are not immune from disclosing that information to the IRS. The Foreign Account Tax Compliance Act (FATCA) requires foreign financial institutions and other non-financial foreign entities to report foreign assets held by U.S. account holders. Individuals are also required to report their foreign financial accounts… Read more »
You may be able to avoid paying FBAR penalties if you qualify for a delinquent FBAR submission or the Streamlined Compliance Procedures. These voluntary disclosure methods eliminate or reduce your tax penalties while getting you into reporting compliance. ~~~~~~~~~~~~~~~~~~~~~~ Key Insights We Will Discuss: The qualifications for a delinquent FBAR submission or the Streamlined Procedures. The… Read more »
Disclosing your unreported offshore accounts can give you peace of mind because you no longer have to worry about massive penalties or IRS criminal investigation. There are several reasons to act quickly and take advantage of the current IRS offshore disclosure options. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Key Insights We Will Discuss: How you can limit your tax penalties… Read more »
If you miss the April 15 FBAR filing deadline, you’ll receive an automatic six-month filing extension. For delinquent FBARs from prior tax years, you should use one of the offshore disclosure methods to file your late FBARs.
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.
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.