Are you a foreign national living and working in San Diego? Have you come into the US on an H1-B or other Visa? It is important for all foreign nationals who reside in the US for more than a few months to understand their obligations under US tax laws. One of the most important concepts to understand is the IRS Foreign Bank Account Report or FBAR. Many people are surprised how short the time period is until they are responsible to file a US tax return and the associated FBAR – it can be as short as 30 days.
The IRS requires all US taxpayers to fully and transparently disclose all offshore bank accounts, investment accounts and assets if the accumulated balance of these accounts and assets exceeds $10,000 at any point in a tax year – even for one calendar day. The failure to disclose these accounts on an FBAR opens US taxpayers to draconian penalties and interest payments, as well as the risk of criminal prosecution for tax evasion.
Many people are simply unaware, and this is what they attempt to tell the IRS. The IRS has label this as “willful blindness” in many court cases, and US courts have sided with the IRS in many instances. If you are able to reside and/or work in the United States and have offshore accounts and assets the IRS expects you to understand it is your responsibility fulfill all of your duties as a US taxpayer.
There are two programs to come into compliance with IRS FBAR reporting requirements: the Offshore Voluntary Disclosure Program or OVDP and the streamlined domestic (foreign) offshore procedures. Which program is best for you?
Allen Barron provides integrated tax, accounting, and legal services to help a foreign national living and working in San Diego to come into compliance with IRS FBAR reporting requirements. We invite you to contact us for a free consultation at 866-631-3470 to learn more about the IRS FBAR requirements and how they apply to your unique circumstances.