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 a tax attorney can provide FBAR knowledge on how to proceed with your foreign accounts.
Key Insights We Will Discuss
- Who needs to file an FBAR?
- How a tax attorney can help you with your overseas 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, call Ayar Law at 800.571.7175 to receive free, no-obligation tax advice from an experienced tax attorney.
- You are required to disclose foreign bank accounts totaling over $10,000 to the IRS
- Failure to submit an FBAR form can result in penalties from the federal agency
- A tax attorney can help you determine if you need to file an FBAR and can represent you if you are facing penalties from the IRS regarding your foreign accounts
- Contact Ayar Law to get free, no-obligation legal advice about your tax matter at 800.571.7175