Properly reporting your foreign bank accounts and other offshore assets is an important part of tax compliance, and it is becoming a focus of the IRS. Foreign Bank Account Reporting or FBAR (also referred to as the Report of Foreign Bank and Financial Accounts) is used by the US government to identify those who possess foreign financial assets. The information indicated on the FBAR can be used to identify unreported income generated abroad and therefore potentially unreported on a tax return.
What to Include in the FBAR?
US International Tax Advisors helps clients with foreign bank account reporting in Richmond, VA, Baltimore, Washington, DC as well as nation-wide. We help you disclose any offshore financial accounts and assets that the IRS needs to know about. Here’s what’s needed in your FBAR:
- Bank accounts including savings and checking accounts, time deposits
- Security accounts including brokerage accounts and other financial instrument accounts
- Insurance policies that have cash value (for example, whole life insurance policy)
- Mutual or pooled funds
- Options accounts or commodity features
Why is Proper Filing Important?
Either by mistake or with full knowledge, some taxpayers fail to accurately disclose their foreign accounts to the respective governing agencies. As a result, these people—and sometimes financial entities—could be charged with stiff penalties. Depending on how serious the mistake, offenders could be subjected to a fine that’s equal to 50% of the highest account balance. Worse, they could face up to 10 years prison time.
Don’t let the IRS catch you with undocumented offshore accounts. Let US International Tax Advisors help you navigate IRS regulations and penalties. As professionals dealing with foreign bank account reporting in Washington, DC and nation-wide that taxpayers trust, we can assist you in filing your reports or applying for amnesty programs. We are happy to help individuals and businesses looking to avoid serious penalties.
Learn more about FBAR and other financial reports that need to be filed correctly by calling us up today.