September 28 is the deadline for US taxpayers with offshore accounts to come into compliance with IRS FBAR reporting requirements through the Offshore Voluntary Disclosure Program or OVDP. US taxpayers who have yet to declare offshore bank accounts, investment accounts and assets have just over 3 weeks to declare these to the IRS or face stiff financial penalties and the genuine risk of criminal prosecution for tax evasion.
All US taxpayers, including foreign nationals who live and work in the United States, are required to provide the IRS with a detailed report of all foreign bank deposits and accounts, financial or investment accounts as well as real estate and other assets through the preparation and filing of an IRS FBAR. Many years ago, The United States Congress passed the Foreign Account Tax Compliance Act or FATCA requiring foreign banks, investment houses and financial institutions report the foreign assets, account information and transactions related to accounts held by U.S. taxpayers. FATCA has proven to be and effective and formidable tool to fight tax evasion through foreign accounts assets, requiring all US taxpayers with foreign financial assets outside the United States to report their accounts and assets on an FBAR.
The failure to file appropriate FBARs exposes US taxpayers to fines of at least $10,000 or 35% to 50% of the accumulated sum of all your offshore accounts at the highest point in each tax year regardless of the present balance(s). In addition, the failure to file an FBAR for each applicable year exposes the taxpayer to criminal prosecution resulting in a prison sentence up to 10 years and a fine of up to $500,000.
September 28 is the Deadline for US Taxpayers with Offshore Accounts to utilize the OVDP to come into IRS FBAR compliance. The experienced and proven tax attorneys and accounting professionals at Allen Barron provide sound counsel and expert advice to help you come into into compliance. We invite you to contact us or call 866-631-3470 for a free consultation to discuss your unique circumstances. Ask about the protections of the attorney client privilege which can provide additional valuable protections.