Did You Lie to Your Foreign Bank about Your U.S. Status?

Did You Lie to Your Foreign Bank about Your U.S. Status?

Did You Lie to Your Foreign Bank about Your U.S. Status?

Did You Lie to Your Foreign Bank about Your U.S. Status? First off, the fact that we have a post about this topic should automatically tell you that you are not alone. We all make mistakes, and nobody is perfect.

The question, as with anything in life — is what do you to resolve the issue.

In recent years, the IRS has take an aggressive approach on matters involving foreign accounts compliance and unreported foreign income.

That does not mean you are out of options — it just means it might be a bit of a race against the Internal Revenue Service clock to get into compliance.

It usually requires the client to submit to one of the Voluntary Disclosure Programs.

Two (2) Examples of Misrepresentations to an FFI 

First, it is important to distinguish between willful vs. non-willful.

If you learned after the fact about the requirements, but had no intent of misrepresentation, then that is not willful. But, how long you want to get compliance, can turn a non-willful situation into a willful problem.

Alternatively, here are a few common issues we handle routinely:

Example 1 – Local I.D.

Dave opens a bank account in Asia.

When asked for his Identification, he claims he does not have one. Rather, he provides a local identification. In addition, when asked about U.S. person status, he denies it — even though he is a permanent resident and fully understands the letter.

Example 2 – FATCA Letter

Michelle receives a FATCA letter.

She is a dual-citizen, but only identifies as a foreign national and completes the W-8BEN instead of a W-9. All the while, she is aware she has dual-status and should complete a W-9.

Golding & Golding: About Our International Tax Law Firm

Golding & Golding specializes exclusively in international tax, and specifically IRS offshore disclosure

Contact our firm today for assistance with getting compliant.


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