Have you come into the San Diego area on an H1-B visa in order to work in one of our high tech or research companies? What does a professional foreign national working in San Diego need to know about the IRS, offshore account and asset reporting and FBAR compliance? Many foreign nationals and residents living and working in the US are unaware of the nature of IRS tax and reporting requirements. One of the most important things to understand is the disclosure of all foreign bank accounts, investment accounts, assets (such as real estate) and income – even if these accounts and assets were established long before your arrival in the United States.
Many of our high tech and research clients are surprised to learn that they face substantial and harsh penalties for failing to report these accounts on the IRS FBAR and associated US tax forms. The first thing we can help you with is:
The IRS does not consider ignorance of the law as an excuse for failure to comply with US tax laws and FBAR compliance
The next question should be:
Do you now, or have you at any time during your US residency had offshore accounts, investment accounts, assets or income with an accumulated balance of $10,000 US? If so, you are required to disclose all of these on the IRS FBAR reporting forms and other IRS tax documents. The experienced international tax lawyers at Allen Barron have extensive experience and expertise in these matters. We can analyze your unique circumstances and help you to come into compliance with the IRS through the Offshore Voluntary Disclosure Program or OVDP, or the Streamlined Domestic (Foreign) Offshore Procedures. You may only be exposed to a penalty of 5% of the highest accumulated balance if you are accepted into the streamlined program, or face no penalty at all. However, you may be exposed to penalties of 27.5% to 50% of the highest accumulated value of your offshore accounts each year of your residence or $100,000 per incident whichever is higher.
What does a professional foreign national working in San Diego need to know about US taxation, offshore accounts and the IRS? We invite you to contact Allen Barron for a free consultation at 866-631-3470. Ask about the protections of the attorney-client privilege and how you can become FBAR compliant with the IRS.