Intentional vs. Negligent Failure to Report Overseas Accounts?

Intentional vs. Negligent Failure to Report Overseas Accounts?

Intentional vs. Negligent Failure to Report Overseas Accounts?

Why Did You Fail to Disclose Your Overseas Account & Assets: Over the past few years, the IRS has significantly increased the enforcement of FBAR violations, and issuance of offshore penalties. There are various types of penalties, including civil non-willful, civil willful and criminal violations (the latter is very rare).

One of the most common questions the Internal Revenue Service will ask in an Audit, Examination or IDR (Information Document Request) is

“Why Did You Fail to Disclose Your Overseas Account & Assets?”

Intentional Failure to Disclose

While there is no bright-line test to define the intentional failure to disclose overseas accounts, if you knew or should’ve know you were supposed to report and disclose your foreign income and assets but chose not to, chances are your actions were willful.

In other words, you knew you had a duty to report, but intentionally did not do so.

Negligent Failure to Report Foreign Income and Assets

The IRS is aware that many people simply did not know of the requirement to report.

There are plenty of people who have overseas accounts because they immigrated or relocated to the United States from another country or might’ve received an inheritance.

These are not the people the IRS is seeking to prosecute.

Did I act with Negligence or Intentionally?

Deciding whether to disclose your foreign income and assets is a big decision but a decision which overall is beneficial to you and your family.

Why? Because with the new FATCA laws (Foreign Account Tax Compliance Act) more than 110l foreign countries and 300,000 foreign financial institutions have agreed to report US taxpayer information to the IRS.

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.