If you used a tax professional to prepare your personal income tax return, you were undoubtedly asked the question if you own any foreign accounts or have control over any such accounts. This is a question that should not be taken lightly as there are some very harsh penalties for those who are found not to be in compliance with the Report of Foreign Bank and Financial Accounts (FBAR).
If you have immigrated to the U.S. and have maintained foreign bank accounts or cash value life insurance policies, or hold such accounts jointly with a parent or other relative, or have a retirement account being held for you in a foreign country, you may find yourself in non-compliance with U.S. tax law. A law designed to catch tax cheats is now encompassing those who work in the U.S. as a permanent resident or who become a U.S. citizen.
It can get real ugly! Imagine [Read more…] about FBAR Traps for the Unwary