If you live or work in the United States it is your responsibility to understand tax laws. This is why Allen Barron has been a leader in IRS FBAR compliance for Canadian and Mexican nationals living and working in the US. Many foreign nationals who reside or work here in San Diego are not aware of the IRS requirement to report foreign bank and investment accounts. If the accumulated balance of your non-US bank and investment accounts exceeds $10,000 at any point in the year (even for a day) you are required to prepare and file an IRS FBAR (Foreign Bank Account Report).
The penalties for failing to comply with IRS FBAR requirements are severe – 50% of the account balance or $100,000 per incident each year, whichever is higher. In addition, the resident taxpayer is exposed to criminal tax evasion charges which carry the genuine threat of imprisonment.
Many who come to the United States to live or work are not aware of IRS FBAR compliance for Canadian and Mexican nationals. IRS regulations and the US tax code make it quite clear: ignorance is not excuse under the law. What should you do if you need to update previously unreported non-US bank and investment accounts to the IRS? We invite you to contact the experienced international tax attorneys at Allen Barron for a free consultation at 866-631-3470. Ask about the protections of the “attorney-client privilege” that ensure you can freely discuss your situation with our attorneys in confidence.
We will discuss the nature of your foreign accounts, the level of risk you face and the options available under the OVDP (Offshore Voluntary Disclosure Program) and a streamlined option which may offer reduced penalties for foreign nationals. We will help you to come into IRS FBAR compliance for Canadian and Mexican nationals while protecting you from the potential for draconian penalties and the potential for criminal charges.