For parties with foreign holdings, reporting them is an essential part of the tax disclosure process. Having foreign accounts is fine, so long as you report their value annually.
It's exceptionally rare to be thrown in jail for not previously disclosing overseas assets. That said, it's possible. Bottom line: the IRS does not take kindly to evasion. Voluntary disclosure can seem scary and long, but it's a much better option than hiding the account. Choosing this option allows you to come clean, possibly save on taxes and fees, as well as avoid criminal prosecution.
During the voluntary disclosure process, the IRS will ask questions about your overseas accounts. Primarily, the agency will examine two main things:
Taxpayers with overseas accounts with a cumulative total of $10,000 or more must adhere to FBAR reporting rules. Discussion of FBAR standards.Read »
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People and businesses with overseas holdings totaling more than $10,000 must file FBAR tax paperwork. Failing to do so can lead to jail.Read »
The Internal Revenue Service requires individuals and businesses to disclose foreign asset holdings yearly. Are you compliant?Read »
Hiding assets from the Internal Revenue Service is never, ever a good idea. But if it happens, there are ways to come clean without incurring criminal penalties.Read »
If you have money or material holdings in a foreign country, the IRS wants to know about it. And if you don't tell, the consequences can be catastrophic.Read »
Dealing with an overseas account can be challenging. Consider hiring a tax professional to help with the process. Whether the IRS has found your overseas account or you're ready to do a voluntary disclosure, a tax professional can help with FBAR requirements and get things in order for you. With all of the changes the IRS requires with FBAR filing, it is easy to get lost in the shuffle. Give us a call at (847) 580-1279 — the sooner we get started, that's one less headache you'll have to worry about.