You May Be Running Out of Time
If You Own Offshore Accounts
September 28, 2018 Effective Date
The U.S. Government, concerned about offshore tax evasion, implemented the Foreign Account Tax Compliance Act (FATCA) which included enhanced enforcement, onerous penalty provisions, criminal prosecutions, and implemented third-party reporting.
By way of background, we suggest you read our June 4, 2013, June 21, 2012 and August 9, 2016 blogs that discussed the Bank Secrecy Act (BSA) that requires certain U.S. persons who have a financial interest in or signature authority over a foreign financial account to report the account annually to the Department of Treasury by electronically filing Financial Crimes Enforcement Network (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts (commonly called FBAR), through FinCEN’s BSA E-Filing System. In addition to FBAR reporting requirements, in certain circumstances FATCA requires filing Form 8938, Statement of Specified Foreign Financial Assets, with the federal Form 1040 income tax return.
WHO MUST FILE A FBAR? [Read more…] about You May Be Running Out of Time If You Own Offshore Accounts