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As FBAR imposes strict and harsh penalties, tax consultants can help in making FBAR compliance easy and smooth.
Make FBAR Compliance Easy and Smooth FBAR, which stands for Report of Foreign Bank and Financial Accounts, is a tax imposed by the federal government on any United States person having a financial interest in, signature authority, or other authority over one or more financial accounts in foreign countries. However, no report needs to be filed if the aggregate value of the accounts does not exceed $10,000. Now, the terms United States person and financial account though seem simple and straightforward, it is not so. Hence, a careful understanding of these terms is necessary to avoid confusion. The term “United States person” means (1) a citizen or resident of the United States, (2) a domestic partnership, (3) a domestic corporation, or (4) a domestic estate or trust. While the term financial account includes any bank, securities, securities derivatives or other financial instruments accounts. The term includes any savings, demand, checking, deposit or any other account maintained with a financial institution or other person engaged in the business of a financial institution. Financial account also generally includes any accounts in which the assets are held in a commingled fund, and the account owner holds an equity interest in the fund (including mutual funds). While, individual bonds, notes, or stock certificates held by the filer are not a financial account nor is an unsecured loan to a foreign trade or business that is not a financial institution. Hence, U.S. residents, expats and dual citizens having foreign bank account are required to comply with FBAR regulations. The IRS amnesty came up with the Offshore Voluntary Disclosure Program (OVDP), when it was found that FBAR compliance was too low. And with OVDP, the IRS was able to collect more than $5 billion in back taxes, interest and penalties from 33,000 disclosures made under the first two IRS programs. The third program resulted in 1500 disclosures, though the amount collected is still under wraps. There is news that IRS is in the midst of introducing a new Amnesty Voluntary Disclosure Program believed to be run from March to October of 2013. Hence, it is a good idea to take the services of a good tax consulting company for assistance. Here is a look at the benefits of collaborating with a leading tax consulting service provider. ● Total compliance, Peace of mind Guaranteed! ● Consultation and Impact Analysis ● Analysis and Planning to reduce FBAR Penalty ● AMT Strategies, Foreign Tax Credit ● Mutual Fund or PFIC computations ● Preparation of forms required to participate in the OVDP program ● Preparation of Tax Amendments and Delinquent FBAR ● IRS Representation by Enrolled Agents or Affiliated CPAs and Attorneys As FBAR imposes strict and harsh penalties, tax consultants can help in making FBAR compliance easy and smooth. Read More About: Entity Formation, OVDP
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