If you are a US expatriate or a taxpayer with offshore accounts, investments, assets or income you should be aware your IRS FBAR submission is due June 30 of this year. Starting next year, FBAR reporting will coincide with the normal IRS deadline of April 15. The FBAR or IRS Foreign Bank and Financial Account Report must be filed electronically with IRS and more than 1 million Americans submitted this important document in 2015. If you have any foreign bank accounts, foreign assets or investments including real property, or if you own or control any interest in a foreign corporation or foreign trust you should contact the experienced international tax attorneys at Allen Barron to discuss your reporting requirements and ensure compliance with IRS FBAR reporting.
Many expats and US resident taxpayers mistakenly believe that they are not required to file an FBAR with the IRS if they qualify for a foreign earned income exclusion or a foreign tax credit. While these programs usually reduce the impact of taxation for resident taxpayers, they do not relieve a US taxpayer of the burden to prepare and file an FBAR with the IRS. If you do not submit an FBAR, or if you fail to fully disclose offshore accounts, assets and income, you face significant penalties that can and will exceed 50% of the highest balance of each account at any point in the past year, or $100,000 per incidence whichever is higher. You will also face criminal tax charges for tax evasion carrying the genuine risk of a federal prison sentence. Recent court rulings have supported each step of the IRS’ offshore strategy including the requirement to fully disclose all information contained within the FBAR form.
If you have not fully and transparently disclosed offshore assets, accounts and income to the IRS now is the time to do so. The tax and accounting team at Allen Barron, led by Janathan Allen will analyze your unique circumstances and help you to take the steps necessary to come into compliance. We work with clients to prepare either an IRS OVDP (Offshore Voluntary Disclosure Program) or streamlined application and prepare all back FBARs and amended returns necessary to come into compliance.
IRS FBAR submission is due June 30 by electronic submission. There are no extensions available, and the failure to comply exposes you to harsh and expensive consequences. We invite you to contact us for a free consultation at 866-631-3470.