Making Sense of the Report of Foreign Bank and Financial Accounts (FBAR)
If you are a US resident and have $10,000 or more (combined) in any foreign bank accounts, you need to pay attention to this article. You are very likely required to file a tax form each year that discloses these foreign assets. A FBAR Form TD F 90-22.1 is now required from you if you have money in these foreign banks OR if you have signature authority over foreign bank accounts. This can include bank accounts, brokerage accounts, mutual funds, trusts, or any other kind of foreign financial account. The intent of this requirement is to prevent assets from being hidden overseas, circumventing US tax laws.
It is important to note that this FBAR report is filed in addition to an annual tax return. In fact, it needs to be received by June 30th each year and must be sent to the US Department of Treasury instead of the IRS. There are also no extensions allowed for this report.
In response to concern from financial institutions and taxpayers, the IRS continues to revisit these regulations. In the past several years, there have been some amendments made to the law that provide relief to those who have signature authority for foreign accounts without any financial interest in these accounts. In addition, the IRS has also now re-opened the very helpful Offshore Voluntary Disclosure Program and this will remain active indefinitely.
While these amendments are helpful, this is still a complicated and serious issue and must be addressed. If you think that the FBAR regulations may apply to you, it is important to get started and begin gathering information from the foreign banks that you have accounts with (or signature authority for) because this communication can take some time. It is also wise to make contact with a tax firm that can help you navigate this complex process and make sure that you are providing the most accurate and correct information possible.
Success Tax Relief can help manage FBAR reporting
Success Tax Relief is a full service tax firm that has a team of experienced staff with vast knowledge about FBARs. We can help you pull all of your account information together, complete the report and provide all necessary supporting documentation to the Department of Treasury. We understand that in the vast majority of cases, failure to comply with FBAR is simply an issue of being unaware of the requirements. Our goal at Success Tax Relief is to assist you with disclosing this information and minimize the financial impact on you and your family. The penalties for failing to complete this documentation are severe, so we do recommend that you act quickly and we are here to help.
You can call our customer service team at 1-877-958-6638 anytime. We are available 24 hours a day, 7 days a week and can begin working to help you in a matter of minutes. As a Better Business Bureau accredited business, you can trust that we are honest, straightforward and work with your best interests at heart. Contact us today!