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, you could find yourself in hot water with the IRS. Find out how an FBAR tax attorney can provide knowledge on how to proceed with your foreign accounts.

When Do You Need to File an FBAR?

According to the IRS, a U.S. citizen, resident, corporation, partnership, limited liability company, trust, and estate, must file an FBAR if they meet certain criteria.  These requirements can include: if you have a financial interest in or authority over at least one foreign financial account and if the combined value of the foreign accounts exceeds $10,000 at any time during the calendar year.

How a Tax Attorney Can Help with Your FBAR Case

When you have foreign bank accounts, there are certain situations in which seeking help from a tax attorney can be beneficial.  In addition to getting information on how to file an FBAR, a tax attorney can help you with the following:

• Delinquent or Missing FBAR(s): If you are late filing an FBAR, or if you’ve never filed the form with the IRS before, the federal agency can assess penalties and fines against you – and in severe cases, it may even seek criminal charges.  In these situations, it is important to hire a tax attorney to represent you against the IRS. An attorney can help you determine how to work with the agency and what information to provide to attempt to get your penalties reduced. He or she can also review options with you for amnesty and Voluntary Disclosure Programs.
• Out of Offshore Compliance: If you have fallen out of  compliance with your foreign accounts, you need the guidance of a tax attorney to determine what steps you should take.  It is especially important to seek  legal guidance before speaking with the IRS or providing any documentation, as you may unknowingly incriminate yourself.
• Seeking Amnesty: If you are seeking foreign amnesty or voluntary disclosure, a tax attorney can review your options with you.  The main choices your attorney may present to you are Internal Revenue Manual Voluntary Disclosure, Streamlined Domestic Offshore Procedures, Streamline Foreign Offshore Procedures, and Reasonable Cause/Delinquency Filings.  You and your attorney can determine which option best fits your case.

Contact an Attorney

If you have overseas accounts, speak with an Ayar Law attorney to gain clarity on your tax position and available options. Our team brings deep experience in complex international tax matters and can help you determine the most appropriate path forward.

Call (248) 262-3400 to schedule a confidential conversation with an experienced tax attorney.