How a Boston Tax Attorney Can Help You with Your Offshore Bank Account ReportingOffshore Account Update
Posted on June 24, 2019 | Share
IRS REQUIREMENTS AND PENALTIES FOR DISCLOSING OFFSHORE BANK ACCOUNTS
What is an Offshore Account and How Do I Disclosure Mine?
Reporting an “offshore” bank account is imperative if a U.S. taxpayer has international assets. By law, a U.S. taxpayer must disclose international assets. The IRS will most likely require the U.S. taxpayer to file a Foreign Bank Account Report (FBAR). The process to file an FBAR is an entirely separate process from filing a federal income tax return and should be completed before the April 15 deadline designated by the IRS. If the taxpayer fails to report these assets, either willfully or non-willfully, they may face serious penalties under U.S. tax law.
An FBAR is an electronic form that must be filed with the Financial Crimes Enforcement Network (FinCEN). An individual is required to file an FBAR if they are U.S. citizen that has any financial interests in a foreign financial account, including bank account, brokerage account, mutual fund, trust, or other type of financial account, exceeding certain thresholds. Because of the nuances of FBAR reporting, FBARs are best completed with the assistance of an experienced Boston tax attorney.
Failure to file an FBAR, whether it is willful or non-willful, may result in heavy penalties. If it is discovered that the individual was not aware of their reporting obligation and therefore their misconduct was due to a non-willful violation, the fine could be $10,000 per violation. However, if the individual was willful in not filing the required FBAR, the fine can be $100,000 or 50% of the balance of the account at the time of the violation – whichever is greater. Again, hiring a Boston tax attorney is imperative to keep these penalties as low as possible.
Because of the severity of these penalties, the IRS encourages taxpayers with foreign assets, even relatively small ones, to consult with a Boston tax attorney who could assist in the filing process.
THORN LAW GROUP HAS THE EXPERIENCE YOU NEED
Managing Partner, Kevin E. Thorn, has helped thousands of clients with their FBAR requirements. Filing FBARs is important for any person with offshore bank accounts in their quest to stay in compliance with U.S. tax law. Each Boston tax attorney at Thorn Law Group is well versed in the specifics of the federal FBATR requirements and can easily assist any client with their FBARs. Having the help of an attorney could save you thousands of dollars. Mr. Thorn has helped his clients save millions.
CONSULT A BOSTON TAX LAWYER AT THORN LAW GROUP ABOUT YOUR POTENTIAL FBAR VIOLATIONS
Foreign account holders charged by the IRS with FBAR violations should contact the Thorn Law Group to see how a Boston tax attorney in our office can assist. To schedule a consultation with Managing Partner, Kevin E. Thorn, call our office at 617-692-2989.