Benjamin Franklin once said, “In this world, nothing can be said to be certain, except death and taxes.” These words have never been more relevant now that international tax compliance is growing as more nations sign tax data sharing agreements.
If you are a US citizen with bank accounts overseas, you are required by the IRS to file a Report of Foreign Bank and Financial Accounts (FBAR) every year. Are your documents already in order?
You need to have your taxes filed and accounts disclosed before the due date. Otherwise, you may have to face serious consequences for non-compliance—from heavy fines to actual jail time.
If you’re having problems handling your FBAR this year, US International Tax Advisors, the most trusted FBAR and FATCA consultants in Reston, VA, the surrounding Metro DC area, nationally and internationally, can help. Here are the three important things you have to know about FBAR:
1. FBAR penalties can be extremely harsh.
You may be facing trouble with the IRS if you have foreign assets or off-shore bank accounts that you failed to inform the proper authorities about. Failure to file an FBAR is considered a felony and you could end up in prison if found guilty of non-compliance. In other cases, you may have to pay heavy fines.
2. There are two kinds of FBAR penalties.
Consequences for non-compliance depends on the magnitude of your violation. Non-willful violations (for example, if you can prove to the IRS that you just failed to remember to file your FBAR), penalties can amount to $10,000 per account in a year. In the case of willful non-compliance, however, (that is, if the IRS doubts your defense of you simply forgetting to declare your overseas accounts), you may have to pay up to 50% of the highest account value for each year and each unreported account.
3. There are FBAR experts you can turn to for help.
This whole foreign bank account reporting is new, so don’t worry if you’re unable to understand everything in a single night. If you’re unsure what to do, you can turn to professionals such as US International Tax Advisors for help. We can provide you with a wide array of services to help you process and report your foreign financial accounts and off-shore assets, as well as represent you in potential audits or litigation.
Avoid a stiff FBAR penalty as a Reston, VA taxpayer, by getting in touch with US International Tax Advisors. Contact us and we’ll help you get through any issue concerning international taxation, foreign account tax compliance, or foreign bank account reporting.