![When Do You Need To File An FBAR?](https://www.taxconnections.com/taxblog/wp-content/uploads/VENAR-AYAR-16.jpg?resize=90%2C90&ssl=1)
According to the IRS, a U.S. citizen, resident, corporation, partnership, limited liability company, trust, and estate, must file an FBAR if they meet certain criteria. These requirements can include: if you have a financial interest in or authority over at least one foreign financial account and if the combined value of the foreign accounts exceeds $10,000 at any time during the calendar year.
When you have foreign bank accounts, there are certain situations in which seeking help from a tax attorney can be beneficial. In addition to getting information on how to file an FBAR, a tax attorney can help you with the following:
- Delinquent or Missing FBAR(s): If you are late filing an FBAR, or if you’ve never filed the form with the IRS before, the federal agency can assess penalties and fines against you – and in severe cases, it may even seek criminal charges. In these situations, it is important to hire a tax attorney to represent you against the IRS. An attorney can help you determine how to work with the agency and what information to provide to attempt to get your penalties reduced. He or she can also review options with you for amnesty and Voluntary Disclosure Programs.
- Out of Offshore Compliance: If you have fallen out of compliance with your foreign accounts, you need the guidance of a tax attorney to determine what steps you should take. It is especially important to seek legal guidance before speaking with the IRS or providing any documentation, as you may unknowingly incriminate yourself.
- Seeking Amnesty: If you are seeking foreign amnesty or voluntary disclosure, a tax attorney can review your options with you. The main choices your attorney may present to you are Internal Revenue Manual Voluntary Disclosure, Streamlined Domestic Offshore Procedures, Streamline Foreign Offshore Procedures, and Reasonable Cause/Delinquency Filings. You and your attorney can determine which option best fits your case.
Have a question? Contact Venar Ayar.
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