Make FBAR Compliance Easy and Smooth by mytaxfiler


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									                         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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