FBAR is required for Legal Permanent Residents (Green-Card Holders) that reside in the U.S. or abroad outside of the United States.
One common question we receive often involves whether or not a Legal Permanent Resident (aka Green card holder) is required to file an annual FBAR (FinCEN 114 aka Report of Foreign Bank and Financial Account Form) to disclose their foreign accounts, certain assets in investments to the US government – and unfortunately, the answer is yes.
Why do Permanent Residents/Green Card Holders have to file?
Because it is important to remember that a Green Card Holder is considered a U.S. Person for US tax purposes.
And, if someone is a US person (not just US citizens) they are required to report their worldwide income and file an annual FBAR statement if they meet the threshold requirements for doing so.
What if they Reside Overseas?
Even if the individual resides outside of United States and qualifies as a foreign resident, it has no impact on the actual FBAR filing requirement.
Unlike FATCA (Foreign Account Tax Compliance Act) the threshold requirements for filing do not change if the person resides outside of United States.
What is the Minimum Threshold Filing Requirement?
If a person has an annual aggregate total of more than $10,000 USD combined in all of their foreign accounts on any given day of the year, then the person has to disclose all of the accounts on the FBAR.
It is important to note (a common misconception) is that once the $10,000 threshold is met, then all of the accounts have to be recorded – not just the account(s) that exceed $10,000.
Out of Compliance with the IRS?
If you are out of compliance for not properly filing the FBAR for other international reporting forms, there can be significant fines and penalties issued against you.
Golding & Golding: About Our International Tax Law Firm
Golding & Golding specializes exclusively in international tax, and specifically IRS offshore disclosure.
We are the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants, and Financial Professionals across the globe. Our attorneys have worked with thousands of clients on offshore disclosure matters, including FATCA & FBAR.
Each case is led by a Board-Certified Tax Law Specialist with 20 years of experience, and the entire matter (tax and legal) is handled by our team, in-house.
*Please beware of copycat tax and law firms misleading the public about their credentials and experience.
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 Offshore Counsel
Generally, experienced attorneys in this field will have the following credentials/experience:
- 20-years experience as a practicing attorney
- Extensive litigation, high-stakes audit and trial experience
- Board Certified Tax Law Specialist credential
- Master’s of Tax Law (LL.M.)
- Dually Licensed as an EA (Enrolled Agent) or CPA
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.