IRS Reporting of Foreign Bank Accounts (2018) – What Must be Reported?
Reporting Foreign Bank Accounts: International tax compliance, and specifically the reporting (or actually the ‘non-reporting’) of foreign bank accounts, income, investments, and assets has become a big business for the IRS.
The IRS penalties associated with the non-reporting of foreign bank accounts, investments, assets and income has become a moneymaker for the Internal Revenue Service.
IRS Reporting of Foreign Bank Accounts
The IRS issues billions of dollars in penalties annually against individuals who have undisclosed and unreported accounts, businesses, and trusts.
For a more detailed explanation of how the penalties are issued and the total values of each type of penalty that was issued in the recent year, you can refer to the national tax advocates recent summary, which can be found by clicking here.
Which Foreign Accounts Needs to be Reported?
Essentially, if you have ownership, interest, or signature authority over any foreign accounts, assets, investments, or other foreign money that meet the threshold for filing the requisite international informational return (or associated 1040 schedule) you typically will have a reporting requirement.
The most common reporting requirement is the FBAR (FinCEN 114) and that is because it is very encompassing, and has the lowest threshold.
Even if you already filed the FBAR, you may have many other forms you have to file as well (even if it duplicates the same information).
Golding & Golding, A PLC
We have successfully represented clients in more than 1000 streamlined and voluntary disclosure submissions nationwide, and in over 70-different countries.
We are the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants, and Financial Professionals across the globe.