Helping You Keep Foreign Bank And Financial Accounts In Compliance With Federal Tax Law
Taking your money offshore can be incredibly rewarding. But if you don’t inform U.S. tax authorities about your activity or try to conceal it, a world of trouble awaits you. At Goldburd McCone LLP, we help individuals and businesses in New York and beyond keep their foreign accounts compliant with U.S. tax law and defend them when they’re accused of violating it.
What Is A Report Of Foreign Bank And Financial Accounts?
A Report of Foreign Bank and Financial Accounts (FBAR) is an annual report that individuals who hold offshore financial accounts must submit to the Internal Revenue Service (IRS). The goal of FBARs is to ensure that these individuals are fulfilling their tax obligations while holding foreign assets.
Those who file must also retain records of specific information related to these accounts, including what kind of account it is, the maximum value it reached that year and the name and address of the bank they’re associated with.
Who Needs To File An FBAR?
Citizens, residents, businesses and other legal entities in the United States are required to file an FBAR if they have some interest in or authority over at least one financial account with a value that exceeds $10,000 and is located in a different country. It doesn’t matter if the accounts yielded taxable income – those who meet the criteria must submit an FBAR regardless.
When Do You Need To File An FBAR?
Those required to file an FBAR application must do so by April 15th, after every calendar tax year. However, there’s no need to worry if you miss the deadline; you get an automatic extension until October 15th to do it.
What Are The Penalties For FBAR Reporting Violations?
Failing to submit an FBAR on time, submitting an inaccurate report or otherwise supplying false information can result in fines or jail time and, in some cases, both.
The penalties’ severity depends on whether the violations were willful, negligent or accidental. For example, knowingly filing a false FBAR or failing to file one or keep the required records could result in criminal penalties – five to 10 years of prison time and fines ranging from $10,000 to $500,000. The civil penalties could be up to a $156,107 fine or 50% of the amount in the violating account at the time.
How Can An FBAR Attorney Help With Your Case?
Legal representation is crucial if you’re facing penalties for an alleged FBAR violation. Our team of skilled, experienced international tax attorneys can design a powerful defense that safeguards you from ruinous fines and incarceration. Then, we can craft a tax strategy that prevents future issues.
Speak To An International Tax Attorney To Learn More Today
If you’d like to learn more about submitting an FBAR or need help defending yourself against alleged reporting violations, contact us today. Call 212-235-1817 or reach out online.