What is an FBAR?
An FBAR is an acronym for the Foreign Bank Account Report. This is an annual report filed with the United States Treasury for Americans to report the existence of foreign bank accounts and other financial accounts held abroad. The report is filed through Form TD F 90-22.1. The United States government requires citizens to report all global income as well as disclosure of all foreign financial assets. Specifically, FBAR rules require U.S. taxpayers to report any financial accounts located in a foreign country in which they have a financial interest, authority, or signature authority and where the total aggregate amounts exceed $10.000.00 during and day during that calendar year.
U.S. taxpayers include:
- US citizens
- Greencard holders (i.e., those with permanent status)
- Resident aliens
- Domestic partnerships
- Domestic corporations
- Domestic estates
- Domestic trusts
- Domestic associations
A U.S. taxpayer is considered to have signature authority if the account's disposition is controlled through proper documentation with the U.S. taxpayer's signature. Authority over a financial account indicates control by another means, such as orally. In either set of circumstances, FBAR rules requires filing. PIASCIK experts know every venue of FBAR filings and can keep you compliant an penalty free.
The importance of filing
The IRS is becoming very aggressive and diligent over finding taxable finances and assets worldwide. As they streamline their process in the modern world, FBAR penalties are being increased and can include heavy civil as well as criminal charges in some cases. FBAR filings can still be investigated by the IRS up to eight years later and taxpayers are still held accountable, even if the taxpayer is unaware of the law. However, the IRS has also provided multiple options for late, amended, and unreported FBAR filings to help taxpayers come into compliance with United States tax laws.
Example programs included the Voluntary Disclosure Practice (which expired in 2009) and the current 2012 Offshore Voluntary Disclosure Initiative (OVDI). The IRS typically did not recommend any criminal charges for taxpayers who were truthfully, timely and completely complying under the provisions of the Voluntary Disclosure Practice although large penalties may still be assessed. The OVDI provides updated FBAR penalties and options for taxpayers to meet their obligations.
PIASCIK is the first step to saving money
PIASCIK can help you mitigate FBAR penalties, reduce the chances of criminal charges, and become compliant with current U.S. tax laws. Our highly educated international tax professionals have already helped over 35 clients successfully maneuver through OVDI programs and seek the IRS foreign bank account amnesty. Our expert tax professionals have over 75 years of combined international tax law experience with representation in over 49 countries.
PIASCIK understands how important your time is, so we provide our world-class service 24 hours a day and 7 days a week. We also offer flat rates with no hidden fees or agendas. In fact, we are so confident in the services we offer, including expatriate taxation, non resident taxes, and foreign tax credits, PIASCIK provides the initial consultation FREE with absolutely no obligation from you. Don't wait for FBAR penalties to accrue even further, contact PIASCIK today, and see how much we can save you.
