Streamline FBAR Filing: How to Avoid Tax Penalties
What is the FBAR Filing?
The Foreign Bank Account Report (FBAR) is a report filed annually with the United States Treasury for Americans to report the existence of foreign bank accounts and other financial accounts held abroad. The FBAR is required if you have $10,000 or more held in a foreign account at any time during the year.
Streamlined Filing Compliance Procedures are Available
If you have failed to timely file required FBARs in the past, it may be beneficial for you to disclose that fact through the Streamlined Filing Compliance Procedures to ensure that you are not assessed with hefty penalties by the IRS. The Utah tax attorneys at PEARSON BUTLER Law can guide you through this process. The streamlined filing compliance procedures described below are available to taxpayers certifying that their failure to report foreign financial assets and pay all tax due in respect of those assets did not result from willful conduct on their part. The streamlined procedures are designed to provide to taxpayers in such situations with:
• a streamlined procedure for fling amended or delinquent returns, and
• terms for resolving their tax and penalty procedure for filing amended or delinquent returns, and
• terms for resolving their tax and penalty obligations.
Eligibility criteria for the streamlined procedures
The modified streamlined filing compliance procedures are designed only for individual taxpayers, including estates of individual taxpayers. The streamlined procedures are available to both U.S. individual taxpayers residing outside the United States and U.S. individual taxpayers residing in the United States.
Taxpayers must certify that conduct was not willful. Taxpayers using either the Streamlined Foreign Offshore Procedures or the Streamlined Domestic Offshore Procedures, will be required to certify that the failure to report all income, pay all tax and submit all required information returns, including FBARs (FinCEN Form 114, previously Form TD F 90-22,1) was due to non-willful conduct.
See also “Offshore Voluntary Disclosure and Foreign Bank Accounts”
Contact a Tax Attorney for Streamline Filing
The Utah tax attorneys at PEARSON BUTLER Law can guide you through this very important disclosure process. Contact our office at (801) 495-4104 for more information. Our tax law team can also help you in a variety of other areas, including the following:
- Tax Court Litigation
- IRS Appeals
- IRS Audits
- Criminal Tax Defense
- Payroll Taxes
- Trust Account Taxes
- Offer in Compromise
- IRS Collections
- Installment Agreements
- Innocent Spouse Relief
- Offshore Voluntary Disclosure and Foreign Bank Accounts
- State Sales Tax Audits
- Tax Planning
- Trust Fund Recovery Penalty (TFRP)
- Nonprofit taxation and compliance