A high-profile topic in America is foreign bank account reporting. With help from Foreign Banks, the IRS actively seeks to correct the large compliance gap from unreported Foreign Bank Accounts.
Here are some of the common questions our tax attorneys in Jacksonville, FL receive regarding Foreign Bank Accounts and the IRS filing requirements. If you would like to know whether or not you should file an FBAR for 2019 or if the IRS has contacted you about one of your FBAR filings, we can help. Request a no-cost, no-obligation consultation by clicking here.
Foreign Bank Account Common Questions
Is Foreign Bank Account Reporting a law?
The Foreign Account Tax Compliance Act (FATCA) was passed in 2010 making it a federal law for all US citizens living abroad and in America to file a foreign bank account annual report called an FBAR filing.
Can the IRS find out about my Foreign Bank Account?
Yes, the new laws also require foreign financial institutions to report beginning July 1, 2014 all US Citizen owned accounts. Even when you fail to report your foreign bank accounts, the IRS will find out about your foreign bank account because your bank will tell them about it.
How do the FBAR Filing requirements work?
For accounts reaching a combined total of more than $10,000 at any time during the year, the IRS requires you to file Form 114 with the Financial Crimes Enforcement Network (FinCEN), a division of the Treasury Department. This is done at the same time you file your taxes every year. Depending on the total in your accounts, Schedule B and Form 8938 may also be required. For more about the Filing Basics, visit our FBAR Practice Areas Page.
I missed my FBAR Filing deadline. What do I do?
For the last 3 years, the IRS has been able to mine data from Foreign Banking Institutions to identify taxpayers who did not complete an FBAR filing. If you have money overseas and have not been filing your reports, the clock is ticking. You should not wait for the IRS to contact you! Take action before you receive a notice from the IRS and you will save yourself a lot of money and grief.
You could earn penalties up to 50% of the value in your accounts the day your filing was due. There are reduced penalties if you are determined to be non-willful with your missed FBAR filing, no more than $10,000 per occurrence. How you file your reports and what you say to the IRS can impact if they consider you to be willful or non-willful. This is why we recommend working with experienced professionals like the tax attorneys at J David Tax Law to help with your FBAR filing requirements.
Can I simply start filing my missed reports?
We strongly advise you to seek professional advice from the Tax Attorneys at J David Tax Law in Jacksonville, FL, if you missed your FBAR filing requirements. If you miss one detail on your report it can cause you to incur penalties. Filing missed reports can also trigger an IRS investigation. Our tax attorneys in Jacksonville, FL can be your advocate and work with the IRS on your behalf.
Does the IRS offer programs or payment plans for missed FBAR filings?
Taxpayers must act quickly to be eligible for programs like the Offshore Voluntary Disclosure Program and Streamlined Disclosure. Once the IRS begins enforcement action against you, it may cause you to become ineligible and/or your foreign bank may get added to an IRS list requiring an even higher offshore compliance penalty.
Miss your FBAR filing? Are you are being aggressively pursued by the IRS for failure to file your FBAR filing? Our tax attorneys in Jacksonville, FL can help.
He is the founder and Managing Partner of J. David Tax Law®. He is the winner of the 2019 Ultimate Tax Attorney awarded by the Jacksonville Business Journal. This award recognizes law firms and attorneys who show exemplary professional talent and skill while demonstrating superior client care, leadership, charitable concern, and civic engagement. Jonathan graduated from Chapman University School of Law. He has practiced law since 2011.
We provide tax solutions for our clients who have IRS and state tax debts, unfiled returns, audits, etc. We advise you on future compliance that enables your individual or business tax problems to be behind you for good.
7077 Bonneval Rd Suite 200, Jacksonville, FL 32216