Our Tax Attorneys Can Help Resolve FBAR Filing Issues

When taxpayers have assets located outside the United States, even for the most experienced taxpayer, the Foreign Bank and Financial Accounts Reporting (FBAR) requirements can be very difficult to understand. If one detail is missed or reported in error, you could quickly find yourself in a dispute with the IRS or other revenue agency.
The tax attorneys at J David Tax Law are experienced at helping clients in all 50 States resolve FBAR filing issues. For immediate help, call (877) 845-2460.

The FBAR Filing Basics

The Foreign Account Tax Compliance Act (FATCA) is a 2010 United States federal law that compels every US citizen living abroad and at home to file a foreign account annual report. This report is called an FBAR filing or FinCEN Form 114. FATCA applies to US residents, as well as US citizens and green card holders living in other countries.
An FBAR filing is not part of a tax filing. It is filed directly with the Financial Crimes Enforcement Network (FinCEN), a bureau of the Treasury Department. If at any point during the year, your foreign accounts reach a combined balance of $10,000 USD, you must file Form 114. This includes all bank accounts, insurance policies, mutual funds, accounts with your signing authority, and any account where you have control of the distribution of funds.
While an FBAR filing is not filed with the IRS, it is due the same day your tax return is due (April 15 of each year). In addition to filing Form 114 with FinCEN, you may also be required to file a Schedule B and Form 8938 with the IRS. Schedule B is required during any year where you received more than $1,500 USD in taxable interest and/or dividends. The Form 8938 is required if any of your foreign financial assets exceeded $100,000 USD on the last day of the year or if they exceeded $150,000 USD at any time during the year. Further, if you are married, you may each be required to file a Form 114 if you each have foreign accounts that are not owned jointly.

Not Sure if You Should File an FBAR for 2019?

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For immediate help, call (877) 845-2460.

Missing Your FBAR Deadline

If you are one day late with your FBAR filing, the Treasury Department will begin assessing a non-filing penalty. If you are determined to be willful in non-filing, this penalty can be up to 50% of the account value on the day your FBAR filing was due. If you are determined willful, it means that you knew you had a legal duty to file your FBAR and you did not do it. If you are non-willful in your FBAR filing, the penalty is much less, up to $10,000 per missed filing. To be determined non-willful, you must sincerely have no knowledge of the filing requirements.
Regardless of your situation, you should seek legal advice from the tax attorneys at J David Tax Law about your FBAR filing and the program that is right for you. The difference in the penalties for being determined willful and non-willful in your FBAR filing are enormous. What you say and don’t say to the IRS is also very important and will impact your eligibility for disclosure programs. If you have been contacted by the IRS about a late FBAR and are under civil or criminal investigation by the IRS, you will not be able to file a late FBAR.

Miss Your FBAR Deadline?

Click here to request a no-cost, no-obligation consultation.
For immediate help, call (877) 845-2460.