Got Foreign Bank Accounts? Learn about FBAR.
In 2009, UBS paid $780 million to the IRS and changed Swiss banking system forever by handing over the Americans. Many other banks have followed the suit, resulting in the IRS nightmares for many US taxpayers with foreign financial accounts.
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 file Report of Foreign Bank and Financial Accounts (FBAR). The reporting threshold is the aggregate value of all foreign financial accounts exceeding $10,000 at any time during the calendar year. It applies to all US persons regardless of their residency.
Disclosure and penalties are vastly better than the alternative. The criminal tax penalties can result in a fine up to $ 250,000, or five years in prison, or both. Civil penalty may be as high as $100,000, or 50 percent of the balance of the account at the time of the violation.
The best way to avoid criminal tax penalties is to either join the IRS’ Offshore Voluntary Disclosure Program (OVDP) or Streamlined Filing Procedure (SFP). Both programs requre filing of past due US tax returns and pament of tax on unreported income. If you are delinquent with your FBAR filing, book your FREE consultation today with Capital Protection Alliance Trusted Tax Advisor at at http://capitalproalliance.com/helpstep1_individual_tax/