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The first thing that few taxpayers end up doing is taking a chance and hoping their non reporting would be overlooked. However, it is a sheer matter of luck. In case, a taxpayer is caught consciously missing the filing of his FBAR then there are severe penalties attached to it and trials for the guilty are very costly.
Options For Reporting Of FBAR Going by the latest regulations, the IRS Amnesty demands to know where all your foreign bank accounts are located. This means, it is a criminal offense to keep this account secret if you have crossed the mark of $10,000.00. For the citizens who are in non-compliance, the IRS has already run two overseas voluntary disclosure attempts. The last one was passed on August 31st, 2011. If you are an American citizen and have missed the date, and willing to report your FBAR account, then there are few options available. The first thing that few taxpayers end up doing is taking a chance and hoping their non reporting would be overlooked. However, it is a sheer matter of luck. In case, a taxpayer is caught consciously missing the filing of his FBAR then there are severe penalties attached to it and trials for the guilty are very costly. Another option that few tax payers resorts to is renouncing the nationality and leave the country, as this happens to be the only way to stay away from the tax formalities and regulations under the IRS Amnesty. Whilst these ways are not very worthy, it is essential that you effectively avert any prosecution by self- reporting tax violations in the first place by leveraging the IRS Overseas Voluntary Disclosure Program (OVDP). The participants of OVDP are normally subjected to a 27.5 percent offshore penalty in relation to other penalties comprising FBAR civil and criminal penalties that includes jail. The IRS OVDP is applicable for citizens who falls under the following criteria: ● Informs the IRS of his tax violations of his own accord ● Has a legal income source ● The person is away from any kind of tax evasion and criminal investigation ● Is into correct tax returns filing ● Makes complete payment of the due amounts In order to avoid any penalties for FBAR evasion, if is best to take expert advice of any tax planning agency that offers suggestions on tax code applies to American residents, US citizens and Green Card holders. It also helps individuals with the following services: ● Full compliance ● Impact and consultation analysis ● Planning and analysis to minimize FBAR penalty ● AMT Strategies, ● Foreign Tax Credit ● Mutual Fund or PFIC computations ● For preparations that are needed to take part in OVDP program ● Preparing of tax amendments and aberrant FBAR It is always better to stay under the guidance of an expert tax planning agency than falling under costly and strict FBAR penalties. This helps keeping your individual tax returns in place. Read More About: Foreign Bank Account
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