Understanding Tax Regulations and FBAR by mytaxfiler


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									                          Understanding Tax Regulations and FBAR
The lure of wider market, larger customer base and better opportunities is what makes the global
enterprises cross borders. The professional workforce are either personals who have followed
their aspirations of working with best of facilities, world-class infrastructure, exceptional work
environment and a huge pay packet or those who have been deployed overseas. Nevertheless, every
country has tax regulations that it expects its citizens, business enterprises and workforce to be
compliant with.

The United States government has tax regulations in place for the people residing in the country.
Under the US laws, every individual irrespective of being an US citizen or a green card holder has to
file a FBAR (Foreign Bank Account Reporting) form. This is a form specified by the US government
and has to be filed by every US persons about the financial status of the individual or business
enterprise outside the United States of America. Taxes are filed for every calendar year and besides
filing of tax returns, the US government requires that every individual provide details of bank
accounts, fixed deposits as well as mutual funds or any other financial arm with signatory powers.

Further, undisclosed foreign bank accounts may lead to a case of willful defaults that are likely to
face criminal charges. Voluntary disclosure of all financial statements under the Overseas Voluntary
disclosure will help individuals to be compliant with the regulations and also avoid any civilpenalities.
Besides this, with number of off-shoring and outsourcing involving freelancers, the United States
have started the the Offshore Voluntary disclosure program or OVDP with objective of bringing tax
payers who evade taxes without disclosing their foreign accounts or entities. The penalties of which
includes payment of a maximum penalty of 27.5% of the highest aggregate balance for a period of
eight years prior to disclosure besides back taxes and delinquency penalties.

With tax laws remaining the same irrespective of the individual’s profession or size of business,
Tax planning becomes an important aspect of financial success. The financial success however
depends on the ability to use the legal technicalities to one's advantage. A number of tax planning
services are today available to help businesses and individuals with their finances.. Availing the tax
planning services of a tax consultant or a financial expert will help individuals and enterprises to use
the laws and legal technicalities to ones benefit.
As financial writer J.K.lasser defined -"Tax planning is the search for alternatives, all of which have
the blessing of good accounting, of the tax law and the courts.", the tax consultants play a major
role the life of a professional. The ability of the tax consultant lies in understanding every client’s
requirements and the changing tax regulations whether it is to advice on FBAR or efficiently
distinguishing between reducing tax burden and complete tax evasion.           Besides, the they also
provide complete insight into the tax code that is applicable to United States residents which
includes Green Card Holders and US Citizens.

Read More About: Foreign Bank Account, FBAR

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