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US Taxpayers beware, you may have FBAR and FATCA Filing Requirements

posted Jun 15, 2015, 12:04 AM by Zaher Fallahi

FBAR Requirements.  US taxpayers with foreign financial assets in aggregate value in excess of $10,000 must file FBAR the form 114 with the Financial Crimes Enforcement Network (FinCEN), which is a bureau of the US Treasury Department.  Effective July 1, 2013, the Form 114 must be filed electronically. The FBAR filing is not part of filing a tax return, but a special report to FinCen.  No extensions are granted. Therefore, if you cannot file your FBAR accurately, file it based on your best estimates, and then amend it upon obtaining necessary information to complete it at a later time.  For additional information click: http://www.zfcpa.com/services/report-of-foreign-bank-and-financial-accounts-fbar

 

FATCA Requirements.  The US taxpayers with foreign financial asset in excess of $50,000 may be required to file the Foreign Account Tax Compliance Act (FATCA), IRS form 8938, along with their form 1040. FATCA filing requirements have been much publicized since 2010 enactment of the law, which requires US taxpayer with foreign financial assets to become compliant with the law. For additional information click: http://www.zfcpa.com/services/foreign-account-tax-compliance-act-fatca

 

What if you missed your prior years’ FBAR filing?  The offshore voluntary disclosure (OVDP)

The IRS is offering taxpayers with undisclosed income from offshore accounts another opportunity to get compliant with their tax returns. The latest OVDP has a higher penalty rate than the previous program but offers clear benefits to encourage taxpayers to disclose foreign accounts now rather than risk detection by the IRS and possible criminal prosecution. http://www.zflegal.com/services/offshore-voluntary-disclosure-program-ovdp

 

Zaher Fallahi, Tax attorney, CPA, is an IRS tax controversy defense attorney, and assists taxpayers in resolving their tax problems with respect to domestic audits and unreported foreign bank accounts and foreign trusts. Contact: Los Angeles (310) 719-1040, Orange County (714) 546-4272, Website http://www.zflegal.com e-mail:  taxattorney@zfcpa.com

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