Are you doing everything right when it comes to filing for taxes?
Foreign accounts must be reported to the Department of the Treasury yearly by April 15th. U.S. taxpayers are required to report these accounts once they have reached $10,000 or more. The FBAR helps with investigation and prevention of violations. Therefore, avoiding filing for the FBAR can result in detrimental costs.
Thankfully, SoCo Tax & Cloud Accounting is here to ensure you don’t have to pay more than you should.
Not filing for the FBAR can lead to significant fines and possible criminal charges; however, when forgetting to file for the FBAR you are not fully at a loss. You have the option to file an Offshore Voluntary Disclosure Program. If failure to file was non-willful, the Internal Revenue Service will only give warning letters or less calamitous penalties. Non-willful means that they did not intentionally avoid filing, rather, they were unaware so the IRS is slightly more lenient. When establishing if somebody is willful or non-willful, it takes about three years worth of audits.
You must personally or jointly own a reportable foreign financial account to file the FBAR individually for the reportable year. While the FBAR is not difficult to file for, it is very crucial as there are strict guidelines that must be followed in order to avoid detrimental losses. To file, you must go online to the Department of Treasury. If your bank account does not have more than $10,000 at a time, it does not exclude you from paying this tax. Rather, it is based on the annual aggregate total at any given point throughout the year.
SoCo Tax & Cloud Accounting can help you stay on track when it comes to filing for proper taxes. We can help you avoid the fines that catch others by surprise. We have years of experience and offer our service nationally for those who struggle with taxes. SoCo can help your business save a significant amount of money, and help you find financial peace.
It is crucial to file for FBAR because otherwise, it can lead to massive fines or other penalties from the IRS.
If you think you might qualify to file for foreign bank accounts, it is important to not overlook. Information and lawyers are provided to help if necessary, in order to ensure that you have filed for the FBAR no later than June 30th. Do not wait until last minute to find out you are struggling with your taxes and need someone to take off the pressure.
Contact us now to guarantee comfort when it comes time to complete FBAR reporting.
Exceptions to the Reporting Requirement:
- Jointly owned accounts between spouses
- US citizens included in a consolidated FBAR
- Correspondent/Nostro accounts
- Foreign financial accounts owned by a governmental entity
- Foreign financial accounts owned by an international financial institution
- Owners and beneficiaries of U.S. IRAs
- Participants in and beneficiaries of tax-qualified retirement plans
- Certain individuals with signature authority over, but no financial interest in, a foreign financial account
- Trust beneficiaries (but only if a U.S. person reports the account on a FBAR filed on behalf of the trust)
- Foreign financial accounts maintained on a United States military banking facility.