Foreign Bank Account Reporting (FBAR) for 2019
Foreign Bank Account Reporting, or FBAR, is important to the IRS with their enforcement efforts regarding foreign accounts and income tax compliance. Chawla & Associates are experts in assisting our clients to comply with FBAR reporting requirements including FinCEN From 114. We have unmatched experience in Naperville, DuPage County and even Chicagoland dealing with challenging FBAR enforcement actions and have successfully reduced FBAR-related penalties for our clients.
The FBAR is required because foreign financial institutions may not be subject to the same reporting requirements as domestic financial institutions. The FBAR is a tool to help the United States government identify persons who may be using foreign financial accounts to circumvent United States law. Investigators use FBARs to help identify or trace funds used for illicit purposes or to identify unreported income maintained or generated abroad.
We specialize in FBAR and FinCEN reporting. If you have a financial interest in or signature authority over
- a foreign financial account
- a foreign bank account
- a foreign brokerage account
- a foreign mutual fund
- a foreign trust
- or other type of foreign financial account
the Bank Secrecy Act may require you to report the account yearly to the Internal Revenue Service by filing Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR). If so, our dedicated team of accountants can help.
Avoid Any FBAR, FinCEN or IRS Criminal or Civil Penalties: Tax evasion can carry a prison term of up to five years and a fine of up to $250,000. Filing a false return can mean up to three years in prison and a fine of up to $250,000. Failing to file a tax return can mean a one year prison term and a fine of up to $100,000. Failing to file FBARs can be considered criminal as well, with monetary penalties up to $500,000 and prison for up to ten years. We can file past FBAR reports and workout tax settlements, as well as provide all in-house tax services regarding any of your tax or FBAR needs.
The civil penalty for failing to file an FBAR is $10,000 for each non-willful violation. But note that the government can apply this penalty per account and per year. That means your penalty exposure goes up the more accounts you have and the more years you fail to comply. If a violation is determined willful, the penalty is the greater of $100,000 or 50% of the amount in the account for each violation. Again, each year you did not file is a separate violation.
Call or Email us today. We have helped many individuals through all this, and we can help you.