The CPAs at Sasserath & Zoraian, LLP have extensive experience advising clients who are required to file a Foreign Bank Account Report (FBAR). We work with you to prepare the report and submit it in a timely manner. FBAR filing is due on June 30th each year for the prior calendar year. The reporting obligation is required even when the account is producing no taxable income. Failure to file a FBAR, or filing it incorrectly, can result in stiff penalties of $10,000 per violation.
U.S. citizens, U.S. residents, and some non-residents are required to file a Foreign Bank Account Report (FBAR) under two circumstances.
1) The person has a financial interest in or signature authority over any financial accounts located outside the United States.
2) The aggregate value of all foreign accounts exceeded $10,000 at any time during a calendar year.
There are certain exceptions to the FBAR reporting requirement that are outlined in more detail in the FBAR instructions. Exceptions include foreign accounts jointly owned by spouses, people included in a consolidated FBAR, foreign financial accounts owned by an international financial institution or government entity, IRA owners and beneficiaries, participants and beneficiaries of tax-qualified plans and others.
The IRS is searching for individuals and businesses that have failed to report foreign income. If your FBAR filing is late, contact Sasserath & Zoraian, LLP right away. We can assist taxpayers that have neglected to file FBARs for income reported on their tax returns. If the IRS is coming after you for high penalties and interest, don’t try to ignore them, turn to us and we’ll find a way to solve your foreign tax problems before they get out of hand.
Contact Sasserath & Zoraian, LLP at 631-368-3110 today to discuss your FBAR needs with an experienced international tax CPA firm.