In 2010 the Foreign Account Tax Compliance Act (FATCA) was enacted. The purpose of FATCA is to discourage tax evasion by U.S. citizens who have bank accounts and investments offshore in other countries. FATCA means it is very important for US tax payers with accounts overseas to get their tax filings submitted correctly or they face serious fines and jail time.
US International Tax Advisors can help you. If you have foreign accounts, our foreign bank account consultants serving Chevy Chase, MD, other Metro DC area cities as well as tax payers nationwide, will be highly valuable. First, here are some things you need to know about FATCA:
FATCA 101: How to Avoid Penalties and Jail Time
FATCA requires U.S. taxpayers that have foreign financial assets exceeding a cumulative value of $50,000 to report them on a new IRS Form 8938, known as the Statement of Specified Foreign Financial Assets. Failure to do this will lead to a penalty of $10,000 or even up to $50,000 for failure to comply after IRS notification.
FATCA violations can also lead to jail time. Under Sec. 7201, taxpayers who don’t disclose foreign bank accounts are guilty of willful tax evasion. This can result in imprisonment for up to five years per tax year a false return was filed.
It is true that FATCA violations result in serious consequences. However, there is something you can do to avoid penalties and jail time—hire a competent foreign bank account consultant and tax advisor like US International Tax Advisors.
Our experienced consultants are highly knowledgeable about FATCA regulations. We keep our counsel on tax compliance and offshore account reporting current. Further, we have built strong relations with major tax jurisdictions and the IRS significantly helping in the resolution process.
Summary of the Top FATCA Provisions
FATCA can be summed up into four main provisions:
- FATCA is an agreement between the United States and foreign nations and their financial institutions, including banks, to report US account holders to the IRS for the purpose of confirming tax reporting requirements of the account holder.
- U.S. residents who have foreign accounts and other assets need to report them on a new IRS Form 8938. Otherwise, the taxpayer may be penalized.
- Taxpayers need to report their financial assets that are not held in a custodial account.
- FATCA has increased penalties and imposed certain rules on accounts outside the United States.
Issues related to FATCA can be difficult to handle on your own. US International Tax Advisors is here to help. Our services are available for both individuals and businesses alike. We have FATCA consultants serving Chevy Chase, MD, the Metro DC area and taxpayers nationwide that can assist you with your international tax compliance needs.
Contact us at (844) 796-8565 today. We have a experts ready to assist you.
