Offshore Bank Accounts & Voluntary Disclosure Program for Foreign Bank Accounts—FBAR
The laws and regulations relating to offshore bank accounts have changed drastically over the last decade. U.S. citizens and residents with foreign or offshore accounts valued at more than $10,000, including mutual funds and brokerage accounts, must complete the Report of Foreign Bank and Financial Accounts (FBAR) by June 30 every year to remain in compliance with the U.S. tax law. As a result of these changes in the law, individuals who are not in compliance are increasingly at risk of IRS criminal investigation and could be subject to severe civil and criminal penalties.Before you say or do the wrong thing or it is too late, retain Gregory McCauley and his team of qualified attorneys to represent you.
Recently, the Internal Revenue Service has given taxpayers with unreported foreign accounts the opportunity to disclose the existence of these accounts. This program, officially known as the Offshore Voluntary Disclosure Initiative (OVDI), gives taxpayers with undisclosed income from offshore accounts the opportunity to get current on their tax compliance obligations without the risk of criminal prosecution. Compliance with OVDI can also reduce potential civil penalties, fines and interest.
If you have unreported offshore bank and financial accounts, a knowledgeable tax attorney can be your strongest asset. The tax attorneys at McCauley Law Offices offer knowledgeable legal representation to taxpayers seeking to comply with the OVDI.
Gregory M. McCauley, Esquire specializes in helping people with offshore bank accounts who wish to come into compliance with their tax filing obligations and avoid possible criminal investigation. McCauley and his team regularly represent taxpayers across the United States with complex international tax matters and OVDI. We help our clients return to tax compliance with the federal reporting requirements for offshore bank accounts and financial cases, while at the same time avoiding criminal prosecution and minimizing their penalties.
Who Must Report Foreign Bank and Financial Accounts (FBAR)?
If you have a financial interest in, or signature authority over, a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account, the Bank Secrecy Act may require you to report the account yearly to the Internal Revenue Service. Report of Foreign Bank and Financial Accounts (FBAR).
The FBAR is required because foreign financial institutions may not be subject to the same reporting requirements as domestic financial institutions. The FBAR is a tool to help the U.S.government identify persons who may be using foreign financial accounts to circumvent U.S.law. Investigators use FBARs to help identify or trace funds used for illicit purposes or to identify unreported income maintained or generated abroad.
Recent FBAR Guidance:
On January 9, 2012, the IRS reopened the Offshore Voluntary Disclosure Program following continued strong interest from taxpayers and tax practitioners after the closure of the 2011 and 2009 programs. This program will be open for an indefinite period until otherwise announced.
Who Must File an FBAR:
American citizens are required to file an FBAR if:
- They have a financial interest in, or signature authority over, at least one financial account located outside of the United States; and
- The aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year to be reported.
It is important to contact attorney Gregory McCauley to take advantage of the program.
Call us now for a free consultation: 1-877-TAX-JAMS (829-5267) or 610-388-4474.