For parties with foreign holdings, reporting them is an essential part of the tax disclosure process. Having foreign accounts is fine, so long as you report their value annually.
It's exceptionally rare to be thrown in jail for not previously disclosing overseas assets. That said, it's possible. Bottom line: the IRS does not take kindly to evasion. Voluntary disclosure can seem scary and long, but it's a much better option than hiding the account. Choosing this option allows you to come clean, possibly save on taxes and fees, as well as avoid criminal prosecution.
During the voluntary disclosure process, the IRS will ask questions about your overseas accounts. Primarily, the agency will examine two main things:
Anyone with overseas accounts must file an annual FBAR report. Click through to read about a taxpayer who failed to do so and got sued for over a million.Read »
Here's the story of a doctor from Florida who failed to file FBAR reports. Now she could be out millions. We discuss the case and implications.Read »
Many people think they can get away with the "I didn't know!" defense when hit with an FBAR violation claim. But it usually doesn't work.Read »
Taxpayers with money in overseas accounts MUST report it to Uncle Sam every year. This is a story of what happens when you fail to comply.Read »
You have signatory authority for an overseas work account worth more than $10,000. That means you must file FBAR paperwork with the federal government.Read »
Taxpayers with overseas accounts with a cumulative total of $10,000 or more must adhere to FBAR reporting rules. Discussion of FBAR standards.Read »
Dealing with an overseas account can be challenging. Consider hiring a tax professional to help with the process. Whether the IRS has found your overseas account or you're ready to do a voluntary disclosure, a tax professional can help with FBAR requirements and get things in order for you. With all of the changes the IRS requires with FBAR filing, it is easy to get lost in the shuffle. Give us a call at (847) 580-1279 — the sooner we get started, that's one less headache you'll have to worry about.