The IRS does not wait for tax season to be on the lookout for non-compliant taxpayers. It is a year-round activity for them. Here’s the latest development in the global vigilance for American tax evaders.
US and Swiss Bank Settlements
If you’re a US taxpayer with money held in a Swiss bank, that money just became much more transparent to the IRS. That’s because in recent weeks, the US government has entered agreements with two more Swiss banks in identifying and prosecuting American bank account holders who are evading their tax responsibilities in the US. The Société Générale Private Banking (Suisse) SA and Berner Kantonalbank AG join numerous other foreign banks that have previously agreed to help crack down on US tax evaders.
With more US citizens living abroad or holding overseas bank accounts, collecting and reporting taxes has become more complicated. In response to new challenges this new reality brings, the federal government passed the Foreign Account Tax Compliance Act or FATCA in 2010. Under this law, if you’re a US taxpayer with bank accounts outside the U.S., you need to file an FBAR or foreign bank account report if you live in Washington, DC or anywhere else in the U.S. This lets the IRS know about your off-shore assets and foreign financial accounts bringing tax payers into compliance.
Failure to file an FBAR before the due date will not be taken lightly by the IRS. You could end up in prison or paying stiff fines. The best way to go about filing your FBAR on time and avoiding being penalized is to hire a firm that offers professional tax advice and services such as US International Tax Advisors.
We are the experts in foreign bank account reporting in Richmond, VA, Baltimore, MD, Washington, DC and the surrounding areas you can turn to for help. We are experts well-versed in complex U.S. as well as international tax laws and reporting regulations. We can guide you through even your toughest tax questions and situations. Call us at (844) 796-8565 or complete our online contact form to get started.