An attorney from Houston, Texas has been convicted of tax evasion and conspiracy to defraud the United States due to scheme involving foreign accounts. In total, Jack Stephen Pursley hid $18 million of a former client’s income from the IRS in order to avoid taxation,...
Foreign Bank Accounts
THE RISKS OF FAILING TO DISCLOSE YOUR FOREIGN BANK ACCOUNTS
If you’ve been putting off disclosing your offshore accounts, you should understand the risks of your inaction. You should consider these risks alongside the costs of disclosing your foreign accounts so you can make an informed decision about what to do. IRS Initiates...
HOW LONG DO YOU HAVE TO MAKE AN OFFSHORE DISCLOSURE?
There is no time limit on your ability to make a voluntary disclosure of your offshore accounts. But you could become ineligible to make a disclosure at any time if the IRS begins examining your return or initiates a criminal investigation. General Disclosure Period...
HOW TO AVOID FBAR PENALTIES
FBAR penalties can be up to $10,000 for non-willful violations. Willful violations have much higher penalties, so taxpayers with foreign accounts should take the time to understand their filing obligations and comply with them. Who Needs to File an FBAR Did the total...
PENALTIES FOR UNDISCLOSED FOREIGN ACCOUNTS
You may face any of the following penalties for the failure to disclose your foreign accounts: Willful or non-willful FBAR penalties. Accuracy-related penalties for the failure to report foreign income. Civil fraud penalties. Late-payment penalties and interest....
HOW MANY YEARS OF UNFILED FBARS SHOULD YOU DISCLOSE?
The general rule is that you’ll need to disclose all unfiled FBARs during the past six tax years. This is the disclosure period required under the Streamlined Filing Compliance Procedures and the New Offshore Disclosure Program. If you weren’t required to file an FBAR...
OFFSHORE ACCOUNT COMPLIANCE FOR TAXPAYERS LIVING OVERSEAS
Expats and other taxpayers who are living overseas may be required to file Form 8938 and FBARs if they open a financial account in a foreign country. A failure to meet these requirements could lead to massive tax penalties. Form 8938 Form 8938, Statement of Specified...
ARE YOU ELIGIBLE TO USE THE STREAMLINED FILING PROCEDURES?
The Streamlined Filing Compliance Procedures (“Streamlined Procedures”) offer taxpayers a less costly method of disclosing their unreported foreign bank accounts when compared to the new Offshore Disclosure Program. However, there are some important restrictions that...
IRS Reporting Requirements for Offshore Bank Accounts
Taxpayers with offshore bank accounts need to be very careful to comply with all applicable IRS reporting requirements. A failure to properly disclosure your foreign accounts can lead to FBAR penalties, FATCA penalties, and even potential criminal prosecution. Make...
Delinquent FBAR Filing Options in 2019
You have three main options for filing delinquent FBARs in 2019. You should talk to a tax attorney to determine which choice best fits your circumstances and will protect you from civil or even criminal tax penalties. Offshore Disclosure Procedures The old Offshore...