San Antonio Offshore Disclosure and Reporting
The international tax attorneys and accountants at Freeman Tax Law have decades of experience preparing offshore disclosure and tax reports to the IRS. Please contact our San Antonio office to schedule a free, no-obligation consultation to discuss your personal tax situation.
OFFSHORE DISCLOSURE PROGRAMS AND FILING
LET US HELP YOU GET IN COMPLIANCE WITH THE IRS
SAN ANTONIO OFFSHORE DISCLOSURE
OFFSHORE VOLUNTARY DISCLOSURE PROGRAM
In 2009 the IRS began a tax ‘amnesty’ program – the 2009 offshore voluntary disclosure program (OVDP). This program allows individuals with undisclosed income from offshore accounts to become compliant with their US tax obligations. The most recent program, instituted in 2014, continues to give Arizona and all U.S. taxpayers clear benefits by allowing them to disclose foreign accounts now, rather than risk criminal prosecution if the IRS finds them before they come forward.
STREAMLINED FILING PROCEDURE FOR FOREIGN ASSETS
Streamlined filing compliance procedures, introduced in 2012 for individuals residing outside the United States and in 2014 revised and expanded to also apply to taxpayers inside the United States, offer a potentially easier and less expensive alternative to the Offshore Voluntary Disclosure Program (OVDP) for qualifying taxpayers who wish to disclose unreported foreign assets and income and file related delinquent information returns.
The streamlined procedures are available only to taxpayers whose failure to report assets and income and file required information returns was due to nonwillful conduct. Under the procedures, taxpayers residing in the United States are subject to a 5% miscellaneous offshore penalty, and taxpayers residing outside the United States are not subject to the penalty.
Whether a taxpayer is considered a resident of the United States is determined under rules specific to the streamlined procedures. Some taxpayers that are residents for income tax purposes may be nonresidents for purposes of the streamlined procedures.
Despite the advantages of the streamlined procedures, some taxpayers may nonetheless want to proceed under the OVDP because the OVDP is not available if the IRS rejects a taxpayer’s disclosure request under the streamlined procedures. In particular, taxpayers who may have difficulty proving that their conduct was nonwillful should consider using the OVDP.
OFFSHORE DISCLOSURE & REPORTING FORMS
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.
FREEMAN TAX LAW & OFFSHORE REPORTING
HELP WITH OFFSHORE FILING REQUIREMENTS
Why do people in San Antonio 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
SAN ANTONIO TAX OFFICE
300 Convent Street #1330-5210
San Antonio, TX , 78205 US
Toll Free: 210-802-4277
Freeman Tax Law is a comprehensive firm, comprised of a full-service team of Attorneys, CPA's and former IRS agents. We have handled hundreds of offshore disclosure cases, and will help you understand your obligation in regards to the receipt of foreign gifts and bequests.
We will clearly explain your options in making all necessary disclosures to the IRS.
OFFSHORE ACCOUNT TAX REPORTING
Federal and state laws change frequently. For current tax or legal advice, an attorney or CPA should be consulted. The information contained in this article is not exhaustive, and is not a substitute for competent legal advice. If you have a question concerning a foreign account or offshore holdings, please contact us. The initial consultation is always free, and of course all communication will be confidential.
GET IN COMPLIANCE WITH OFFSHORE REPORTING REQUIREMENTS
If you have unreported offshore assets, or have already been contacted by the IRS - you're foreign reporting requirement is not going to go away. The longer you wait, the more problems you may encounter when trying to solve your tax issues. Contact our Phoenix office today to schedule a free, no-obligation consultation.