Experienced Tax Law Representation For FBAR Violations

U.S. taxpayers with offshore financial accounts should know about FBAR, or the Report of Foreign Bank And Financial Accounts. U.S. citizens, residents or people doing business in the country with foreign financial accounts that exceed $10,000 are required to file an FBAR.

Due to complex requirements, a person may not recognize that they need to file an FBAR with the IRS. For example, someone with a business partnership in the United States who has offshore financial accounts may not understand that they must file an FBAR. Our international tax law attorneys can help you understand FBAR requirements and complete the appropriate documents.

The IRS Is Taking FBAR Violations Seriously And You Should Too

The IRS is looking at FBAR violations with intense scrutiny. They are pursuing violators vigorously, whether they purposefully or mistakenly neglect to file. If you fail to file the appropriate documentation before the last day of June of the following calendar year that your account qualified for FBAR, then you may incur international tax enforcement, criminal tax investigation, serious fines and possible jail time.

You could face both civil and criminal penalties for violating FBAR. Penalties will depend on if the IRS deems your mistake as nonpurposeful or a willful act of noncompliance. You may face the following fines:

  • $10,000 or less for a nonwillful violation
  • The greater of $100,000 or an amount equal to 50 percent of the balance of the account in question at the time of the violation for willful violations
  • $500 or less for a first offense if you are a business
  • $50,000 or less for repeated negligent violations if you are a business

You may also face separate criminal penalties for willfully failing to file an FBAR. If the IRS proves that you made the decision not to file the correct documentation when you knew you should have, you can face a fine of up to $250,000 and up to five years in prison.

Violators Have Options

The IRS has six years to assess civil penalties for FBAR violators. After a six-year period, the IRS can no longer make an assessment. After an assessment, the IRS has two years to recover penalties. However, that does not mean you cannot be criminally prosecuted.

If you find that you are facing a FBAR violation, then our attorneys may be able to help mitigate the fallout. If you meet specific conditions set forth by the IRS, then they may agree to lessen civil penalty assessment. We will work closely with you to meet their criteria and help you stay in compliance in the future.

Call Us For Offshore Financial Account Tax Guidance

At Kundra & Associates, we offer high-quality tax law service. Call our Maryland location at 301-637-8130 to arrange an appointment with a knowledgeable lawyer. You may also complete a secure contact form and we will call you.