While facing a slew of federal charges including conspiracy against the United States the FBAR related charges will put Paul Manafort behind bars. The charges against the former campaign manager and his aid are serious in their very nature, but it is interesting that one of the central issues associated with money laundering allegations is the failure to file IRS Reports of Foreign Bank Accounts (FBAR) over several years. The effort to conceal offshore activities and avoid US taxation (as well as disclosure of other financial activities) will very likely lead to a “willful” intent to hide offshore accounts from the IRS exposing Manafort to 10 years in a federal prison.
It may seem obvious to many Americans the failure to report the presence of these accounts constitutes a failure to comply with IRS FBAR reporting requirements. Perhaps the coverage of these events will be eye-opening for many other Americans who simply may not have realized the penalties associated with the failure to report offshore accounts to the IRS on related FBAR forms. Our office has spoken with countless individuals with a variety of circumstances who did not realize the reporting requirements they faced. The IRS terms this “willful blindness” stating that anyone with an offshore account or accounts with more than $10,000 (aggregated total) at any point in a year are required to disclose these accounts on the IRS FBAR. The IRS asserts anyone with any level of education, financial investment, world travel or the experience of age should understand their duties as a US taxpayer to understand US tax law and report offshore accounts.
Many who come to work on H1-B visas or who have inherited offshore accounts and assets are unaware of their obligations under US tax laws. If you qualify as a US taxpayer, regardless of your personal or professional status, you are required to disclose all offshore accounts and assets if the aggregate value of the accounts ever exceeds $10,000, even for a day. Allen Barron provides answers to FBAR and other international investment questions and we invite you to contact us or call 866-631-3470 for a free consultation. Come into compliance with IRS FBAR reporting requirements or, like Paul Manafort, face FBAR related charges and the harsh penalties and exposure to criminal tax evasion charges and the draconian powers of the IRS.