Just Learned About FBAR & Missed Prior Filings, Now What?
Around this time of year, we get inundated with inquiries from individuals, businesses and estates who just learned, for the first time, about the IRS FBAR requirements (aka FinCEN Form 114).
Just Learned About the FBAR?
The FBAR is an important form. It is used to report foreign bank and financial accounts to the IRS. Technically, the form is called FinCEN Form 114.
While the penalties for FBAR non-compliance can be bad, there are several safe reporting options available to taxpayers worldwide.
Common FBAR Example
Jeff is a U.S. person with money overseas in Hong Kong. Jeff had these foreign accounts before they were “foreign” aka (before he came to the U.S.)
The accounts are worth about $3M, and generate income in the 5% – 8% range.
The income accumulates tax-free in the account, and the income is not distributed. Therefore, Jeff never gave it a second thought.
This year, Jeff launched his own consulting firm (congratulations, Jeff!) He wants to get his ducks in a row, so he schedules a consultation with a CPA.
The CPA asks about foreign accounts. Jeff explains he never reported these accounts because he never knew he had to — he also never reported the income (accrued income is taxable, subject to PFIC rules)
The CPA tells Jeff that it may be a problem, and before giving him a tax organizer to complete for this year’s tax return, Jeff should speak with an FBAR specialist lawyer. Jeff makes an appointment, but the appointment is not until tomorrow.
That night, Jeff finishes a marathon Google search session (and a good bottle of Soju), and has come to the conclusion he needs help.
What can Jeff do?
it is probably nowhere near as bad as Jeff has been led on by the internet.
If Jeff retains an experienced FBAR Lawyer who is a Board-Certified Tax Law Specialist, and specializes in FBAR amnesty and disclosure — chances are Jeff will be just fine.
Jeff’s best option is FBAR Offshore Disclosure (aka) FBAR Disclosure Amnesty
Jeffrey has several options available to him.
FBAR Disclosure Amnesty – Golding & Golding (Board-Certified)
We specialize exclusively in international tax, and specifically IRS offshore disclosure.
We have successfully represented clients in more than 1,000 streamlined and voluntary offshore disclosure submissions nationwide and in over 70-different countries. We have represented thousands of individuals and businesses with international tax problems.
We are the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants, and Financial Professionals across the globe.
- Learn more about the Board-Certified Tax Lawyer Specialist credential
- Learn more about the Enrolled Agent credential
- Learn more about Golding & Golding’s Case Accomplishments
- Learn more about Golding & Golding Testimonials from prior clients
We are the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants and Financial Professionals worldwide.
Less than 1% of Tax Attorneys Nationwide Are Certified Specialists
Sean M. Golding is one of less than 350 Attorneys (out of more than 200,000 practicing California Attorneys) to earn the Certified Tax Law Specialist credential. The credential is awarded to less than 1% of Attorneys.
Recent Golding & Golding Case Highlights
- We represented a client in an 8-figure disclosure that spanned 7 countries.
- We represented a high-net-worth client to facilitate a complex expatriation with offshore disclosure.
- We represented an overseas family with bringing multiple businesses & personal investments into U.S. tax and offshore compliance.
- We took over a case from a small firm that unsuccessfully submitted multiple clients to IRS Offshore Disclosure.
- We successfully completed several recent disclosures for clients with assets ranging from $50,000 – $7,000,000+.
How to Hire Experienced FBAR Counsel?
Generally, experienced attorneys in this field will have the following credentials/experience:
- Board Certified Tax Law Specialist credential
- Master’s of Tax Law (LL.M.)
- Dually Licensed as an EA (Enrolled Agent) or CPA
- 20-years experience as a practicing attorney
- Extensive litigation, high-stakes audit and trial experience
Interested in Learning More about Golding & Golding?
No matter where in the world you reside, our international tax team can get you IRS offshore compliant.
Golding & Golding specializes in FBAR and FATCA. Contact our firm today for assistance with getting compliant.