There are a lot of questions about the recent FATCA developments, and the initial exchange of financial information between the IRS and foreign institutions and tax agencies. If you are not in full compliance with IRS FBAR reporting requirements, it is imperative that you act immediately to come into compliance.
Who does this affect? If you have offshore or foreign investments (including Swiss accounts, and those in Canada and Mexico) anywhere in the world, you are required to make a full and transparent disclosure of these holdings to the IRS on your Foreign Bank Account Report or FBAR. The FBAR is where you list all related foreign assets including:
- Bank Accounts
- Investment Accounts
- Depository Accounts
- Custodial Accounts
- Tax Favored Foreign Retirement, Pension and Non-Retirement Savings Accounts,
- Stocks in Foreign Entity or Issued by a Person Outside of the United States
- Collections Owned and Stored Abroad
- Cash Value Life Insurance Contracts
- Ownership Interest in a Foreign Corporation, Company or Partnership
There are two primary vehicles provided by the IRS for US taxpayers to consider when coming into compliance: The Offshore Voluntary Disclosure Program or OVDP and the Streamlined Program. There are too many factors to list here that determine which option is best based upon your unique situation.
If you have offshore accounts or assets we invite you to contact us for a free and substantive consultation at 866-631-3470. Ask about the benefits of the attorney-client privilege and all that Allen Barron can do to help protect your interests and reduce your financial liabilities.