Foreign Bank Disclosures
In the last several years, the government has stepped up its efforts to collect information on bank accounts held by U.S. citizens in foreign countries. Every year by June 15, taxpayers must disclose their foreign accounts and balances to the IRS via a Report of Foreign Bank and Financial Accounts, known as FBAR.
The law has been in place for nearly five decades, but enforcement has increased dramatically since the Foreign Account Tax Compliance Act, known as FATCA, was enacted in 2010. This law ramped up the pressure on foreign nations to disclose U.S. account holders, and many offshore banks now are in position to turn over this information — whether or not the account holders do it themselves.
Amnesty Is Possible, But Not Forever
Fortunately, the government has a tax amnesty program called the Offshore Voluntary Disclosure Initiative, known as OVDI. If you voluntarily report accounts from previous years, you may be able to minimize the tax penalties you would otherwise face. However, it is crucial to do this quickly — before the IRS comes looking for you.
We’ll Guide You Through The Foreign Bank Disclosure Practice
The nationwide tax attorneys at The W Tax Group can help you to sort through what you need to do to resolve your situation as painlessly as possible. The IRS takes these violations seriously, and failure to report foreign bank accounts can bring stiff penalties, including criminal tax evasion charges.
Penalties can be $100,000 per year or 50 percent of the highest account balance each year. Sometimes, this can lead to penalties that far exceed account balances — a disastrous situation that you want to avoid.
Our tax lawyers may be able to help you avoid or lessen penalties as a result of FBAR violations. Let us provide you with a free personalized tax resolution plan to show you how you can free yourself of the pressures of the IRS. Call us today at 877-500-4930, or complete and submit our online contact form to get started.