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Easy Reporting Of Foreign Bank Account

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					                          Easy Reporting Of Foreign Bank Account

The overseas account disclosure is a common term in the global taxing platform. The moment where
the U.S government compelled the UBS Switzerland to share the names of the U.S. entities that hold
undisclosed foreign bank accounts are automatically compelled the IRS to start the OVDP i.e. the
Overseas Voluntary Disclosure Program practices. These practices in turn compelled a percentage of
about 30,000 taxpayers to report their overseas holdings that the other would not have been disclosed.


The taxpayers of Foreign Bank Account reporting, also known as FBAR could also save themselves from
all hassles by reporting their overseas financial accounts earlier as made clear by the tax law. However,
whenever a foreign bank account exceeds, two forms are needed to be filed. They are:


    ●   The Report of Foreign Bank and Financial Accounts
    ●   The Statement of Specified Foreign Financial Assets


Importance of FBAR


FBAR is essential for a taxpayer who is a domestic entity or belongs to the U.S having a financial interest
in or a signature authority over an account that records the balance of $10,000 or even more at any
point of time within a year. There is a form that is due from other tax filings that the FBAR requires to
receive from the government within June 30th each year to the IRS. The Form is termed as Form TDF 90-
22.1.


In case an individual holds more than one account then the aggregate of the value of the accounts
will be taken into consideration. However, if the taxpayers fail to report their FBAR the they would
require to withstand severe penalties. Any type of accidental failure might result in a penalty of $10,000
annually. In case a taxpayer avoids the FBAR filing intentionally then the penalty result in $100,000 or
50 percent of the account balance, whichever is evaluated to be more. According to the latest FBAR
program the following are the requirements for the taxpayers:


    ●   To file 7 years of back tax returns indicating the unreported foreign earnings
    ●   Estimate the interest every year on the unpaid tax
    ●   Applying 20 percent precision related penalty or 25 percent of delinquency penalty
    ● Applying 27.5 percent penalty on the basis of the highest balance of the foreign account over
        the last 8 years


Hence, in case you are associated with in any financial transactions or have overseas bank accounts it is
important that you take part in FBAR reporting with the expert advice of a tax planning agency. This will
in turn provide you with perceptive insights and meaningful suggestions.

				
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Description: FBAR is essential for a taxpayer who is a domestic entity or belongs to the U.S having a financial interest in or a signature authority over an account that records the balance of $10,000 or even more at any point of time within a year.