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. Through our unique advisory-first approach, we will carefully discuss and assess all of your foreign asset reporting obligations. We will inform you of all options to deal with any prior year non-compliance to ensure your peace of mind moving forward.
Contact our firm today to discuss your foreign asset issues and how we can assist you.