FBAR Filing Help – Late, Unfiled, Delinquent – Representation & Negotiation – Fresh Start Tax LLC – Attorneys, Former IRS
Michael D. Sullivan is Former Award Winning IRS Agent and Teaching Instructor with the Internal Revenue Service. Mr. Sullivan worked in the local, district and regional offices of the IRS.
Mr. Sullivan has been in private practice since 1982 and is a tax expert in the field of Federal and State Tax Resolution.
FBAR filing is certainly been a hot topic of late. The Department of Justice ( DOJ ) and the IRS has made this priority number one due to the huge amounts of tax revenue it has brought in to the US economy. FBAR filing and paying has been a huge boost to the coffers of the US Treasury. $5.5 Billion has already been collected when 33,000 individuals came forward.
Both government agencies ( IRS and DOJ ) have made this a priority and with the fear of going to jail a record number of individuals are coming forward to file back, late and or delinquent FBAR Reports and Amended Tax Returns.
IRS keep a list of prosecutions on there website. You will find out the fine amounts and the sentencing involved.
The individual has basically two options.
Option number one is to make what is called a ” quiet disclosure.” A Quiet disclosure is simply filing and FBAR report and amending your tax returns. The second option is to contact CI and file through CI.( Criminal Investigation )
There are pro’s and con’s to both. It is critical to contact a Tax Attorney or Tax Lawyer to help make these decision. Those decisions are based on your individual history and fact pattern on your unique case. Many factors are taking into consideration before an opinion can be rendered.
How do you report FBAR and amending your tax returns.
Filers report their foreign accounts by (1) completing boxes 7a and 7b on Form 1040 Schedule B, box 3 on the Form 1041 “Other Information” section, box 10 on Form 1065 Schedule B, or boxes 6a and 6b on Form 1120 Schedule N and (2) completing Form TD F 90-22.1 (PDF).
When is the FBAR due?
The FBAR is due by June 30 of the year following the year that the account holder meets the $10,000 threshold. The granting, by IRS, of an extension to file Federal income tax returns does not extend the due date for filing an FBAR.
PLEASE NOTE – Filers cannot request an extension of the FBAR due date. Due date is the due Date!
Filing and amended FBAR
If you need to amend, FBAR filers can amend a previously filed FBAR by:
a. Checking the Amended box in the upper right-hand corner of the first page of the form,
b. Making the needed additions or corrections,
c. Stapling or attaching it to a copy of the original FBAR and
d. Attaching a statement explaining the additions or corrections.
If you fail to file a FBAR Report.
Failure to file an FBAR when required may potentially result in civil penalties, criminal penalties or both. Much depends on your case history and amount of tax owed and intent or lack thereof.
If you learn you were required to file FBARs for earlier years, file the delinquent, late or past due FBAR reports and attach a statement explaining why the reports are filed late.
Be careful with this statement. It is best to have a tax attorney or tax lawyer write this letter.
No penalty will be asserted if the IRS investigator determines that the late filings were due to reasonable cause. This is the reason a quite disclosure is sometimes recommended.
Can a cumulative FBAR penalties exceed the amount in a taxpayer’s foreign accounts?
This is a killer but the answer is yes!
Under the current penalty provisions found in 31 U.S.C. 5314(a)(5), it is possible to assert civil penalties for FBAR violations in amounts that exceed the balance in the foreign financial account.
For simple FBAR Reporting and amending of tax returns there is no reason why individuals cannot do this on there own. Forms are available online.
If you are not sure about your situation and have other issues, it is highly recommended to a call us today for a no cost tax consult. 1-866-700-1040.
FBAR Filing Help, Amending Tax Returns, Representation & Negotiation, Attorneys, Former IRS, Ex-Pat Representation
