Over the past 15 years, the IRS has dramatically increased the obligations of US persons to report their assets overseas. Businesses and individuals that maintain foreign bank accounts must annually disclose these accounts to the Treasury Department every June. This report is called the Foreign Bank Account Report or “FBAR”. Additionally, anyone who acts as a signer on a foreign bank account (for an employer or family member, for instance) must also file an FBAR.
FBAR reporting is no joke. Failure to comply with FBAR requirements can lead to civil penalties of up to 50% of the balances in your account for the unreported years or possibly even criminal charges.
You may also be required to file Form 8938 to declare foreign assets and income on your annual tax return. The threshold for filing Form 8938 is higher than the FBAR, but the list of included assets is more expansive.
We assist many clients in meeting their foreign asset compliance obligations. We work with small business and individual taxpayers to prepare and file the appropriate forms each year. Additionally, we have assisted large employers with preparing and filing FBARs for each entity and individual signer on their accounts. We are able to provide these services efficiently and at a fraction of the cost of a large firm.
Contact our firm today to discuss your foreign asset issues and how we can assist you.