Keep in mind that those filing FBAR aren’t taxed on the balance of the accounts or anything of the sort–it’s truly just a reporting requirement so that the IRS knows what money lies overseas.
Can the IRS track offshore accounts?
IRS Foreign Bank Account Investigations How does IRS Investigate Foreign Bank Accounts? With the IRS’ increased enforcement of offshore account compliance, trust reporting and income disclosure, U.S. Taxpayers are at higher risk of penalties. The failure to properly report foreign money may result in significant fines.
What do you need to know about FBAR reporting?
Frequently Asked Questions: Ever since the implementation of FATCA (Foreign Account Tax Compliance Act), FBAR (Report of Foreign Bank and Financial Accounts) reporting has become a major concern for U.S. Taxpayers with foreign accounts.
When to file FBAR for foreign bank account?
US persons with ownership or signature authority over foreign financial accounts should obtain complete copies of their account records and fully educate themselves regarding FBAR reporting obligations and, when necessary, seek advice from US tax professionals in advance of the June 30th filing deadline.
Who is the Columbus Ohio tax attorney for FBARs?
Columbus tax lawyer Matthew R. Porter is an experienced international tax attorney who understands what it takes to overcome the legal hurdles associated with reporting delinquent FBARs under the offshore voluntary disclosure process and streamlined filing compliance procedures.
What happens if you fail to file FBAR in accordance with FATCA?
If you fail to do so and get stuck in the IRS/DOT crosshairs as a result of the foreign financial institution reporting the account in accordance with FATCA, it will be much harder to explain the situation at that time versus simply filing the FBAR timely or entering into OVDP or the Streamlined Program.
