FBAR & FOREIGN BANK ACCOUNTS
If you have a bank account outside of the United States, you will more than likely be scrutinzed by the IRS at some point.
If you do not get into compliance with the IRS, you are at risk of having your foreign accounts frozen or even closed.
Freeman Tax Law has decades of experience representing individuals with complex overseas tax problems, specifically regarding FATCA law and helping them protect their assets while avoiding civil and criminal liability. Learn more below or watch the free FATCA webinar.
FBAR AND OFFSHORE REPORTING REQUIREMENTS
WHAT IS FBAR?
FBAR stands for Foreign Bank Account Report. The United States Department of Treasury has the authority to collect information from United States persons who have financial interests in or signature authority over financial accounts maintained with financial institutions located outside of the United States. The treasury requires that a FinCEN Form 114, Report of Foreign Bank and Financial Accounts be filed if the aggregate maximum values of the foreign financial accounts exceed $10,000 at any time during the calendar year.
The FBAR is a way for the US government to identify people who are trying to avoid or evade US income tax by hiding income in offshore banks, brokerage accounts or through the use of nominee entities. It is entirely legal for US citizens and residents to own and have interest in foreign accounts. However, the failure to properly disclose those holdings, as well as the failure to include any income from those assets on an individual’s tax return can result in serious negative consequences.
The penalties for failing to file FBARs are severe. There is a minimum $10,000 penalty if your failure to file was inadvertent. However, if you are found guilty of willfully not filing a FBAR, the minimum fine is $100,000 or half the value of the account, whichever is greater. For willful failure to file FBAR or retain records of account, there are also criminal penalties (jail time) that might be imposed.
FBAR OR FOREIGN ACCOUNT QUESTIONS?
Freeman Tax Law has of decades of experience representing individuals with complex overseas tax problems, specifically regarding FATCA law and helping them protect their assets while avoiding civil and criminal liability.
OFFSHORE VOLUNTARY DISCLOSURE PROGRAM
Below are two of the forms that you may be required to file if you have or have had income or assets in foreign countries:
FinCEN From 114
FinCEN Report 114, Report of Foreign Bank and Financial Accounts, is used to report a financial interest in or signature authority over a foreign financial account. United States persons that have a financial interest in or signature authority over foreign financial accounts must file an FBAR if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year. Foreign financial accounts include bank accounts, brokerage accounts, mutual funds and trusts.
Form 8938 is used to report “specified foreign financial assets” if the total value of all specified foreign financial assets in which you have an interest is more than the reporting threshold (which varies depending on your filing status and whether you live in the U.S. or abroad). You are required to include a reportable asset even if you receive no income or distributions with respect to that asset. Form 8938 must be filed with your income tax return. The penalty for failure to file this form or late filing is $10,000. If you receive a notice from the IRS for failure to file this form and do not file it within 90 days of the IRS notice, additional penalties may be imposed.
FBAR FILING SERVICES BY FREEMAN TAX LAW
Why do people choose Freeman Tax Law?
- Straight-Forward, Easy to Understand Style
- Years of Experience Handling Cases of All Sizes and Types
- Will Handle All Communication with the IRS on Your Behalf
- Free, No-Obligation Initial Consultation
MAKING YOUR DISCLOSURES CORRECTLY?
Freeman Tax Law created the Foreign Account Compliance Ebook to guide you through the complex process of making an offshore bank account disclosure to the IRS
We'll teach you:
- How to avoid criminal issues from improper disclosures
- The inner workings of FBAR and FATCA
- How to protect your money when you bring it in from overseas
If you need more assistance with your offshore bank account disclosure, please contact us.
Jeffrey S. Freeman, Esq. has personally represented and counseled hundreds of clients with regard to their tax matters. During his early career, Mr. Freeman worked for a large international tax firm specializing in international tax issues. He has extensive experience representing Fortune 100 clients and high net worth families. By combining large firm training and attention to detail, with a boutique firm approach and a personal focus on resolving complex tax matters efficiently, creatively and strategically, Mr. Freeman’s priority is always to provide his clients with the highest level of representation.
Mr. Freeman holds a Masters of Law in Taxation (LL.M.) from Georgetown University Law Center in Washington, D.C. and Juris Doctor, Cum Laude, from the Detroit College of Law at Michigan State University and a Bachelor of Arts in Accounting, with honor, from Michigan State University.
“The client is the most important person at our firm….it is our job to understand their facts, clearly explain all options to resolving a problem, treat them with integrity and provide the highest level of representation.”
— Jeffrey S. Freeman, J.D., LL.M., Attorney and Counselor