FOREIGN BANK ACCOUNT REPORTING (FBAR)
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UNDERSTANDING FOREIGN BANK ACCOUNT REPORTING
A foreign bank account includes all accounts held by an international assignee. On a basic level, it can be a checking or savings account maintained with a branch of a financial institution. The institution is physically located outside the United States.
However, the definition may be broader than this. The accounts may pertain to whole life insurance accounts, brokerage accounts, mutual funds, trust funds, and other types of foreign retirement accounts.
Any U.S. person is subject to these foreign account reporting rules. This includes all citizens and residents, as well as legal entities like partnerships and corporations created under United States laws.
Speak to a tax expert about Foreign Bank Account Reporting. Contact us now!
FOREIGN BANK ACCOUNT REPORTING (FBAR) EXPERTS
At Tax Defense Partners, we can help you figure out whether you need to file a FBAR form. If you do, we will advice you on what to say on it. Keep in mind that the FBAR instructions are not always easy to understand. What’s more, your report must be filed separately. It cannot be submitted along with your tax return.
When you work with us, we can facilitate the necessary FBAR filing with the IRS before the law comes after you. It makes a major difference in how much money you can save. Stop the unnecessary worry. Don’t hide out. Call Tax Defense Partners.
THE CONSEQUENCES OF NOT REPORTING A FOREIGN BANK ACCOUNT
Today, the IRS is cracking down aggressively on U.S. citizens who refuse to report their overseas assets. The government has signed agreements with foreign countries and banks to determine which citizen holds what accounts in brokerage houses, banks, and more. Don’t be mistaken. They will find you even if you lay low.
Next, the penalties are high for failure to report. If you simply forgot to file, you face a $10,000 fine. If the IRS thinks you did it on purpose, your fine is approximately $100,000 or half of your foreign account’s value. Now, the value of your account is not just the amount of cash you have in it. It includes the value of all the non-cash assets as well, including real estate, planes, boats, insurance policies, bonds, stocks, etc.
Lastly, no foreign account is too small. The IRS scrutinizes foreign accounts of any size.
CHOOSE TAX DEFENSE PARTNERS FOR FOREIGN BANK ACCOUNT REPORTING (FBAR) SERVICES
Our team understands the importance of maintaining the privacy and security of your foreign financial accounts information. That’s why we only share and receive information from you via a private cloud platform. We utilize the same security encryption as most banks use.
Tax Defense Partners continually strives to make it easy for our clients to get their FBAR filings done. You can count on our IRS or CPA enrolled agents to work directly with you through the entire reporting process, and beyond!
If you have more questions to ask about our foreign bank account reporting expertise, do not hesitate to contact us today.
