Late FBAR Filing Penalty – FBAR Attorney, Tax Lawyers, Former IRS – Criminal & Civil Tax Help Representation – International Tax Help
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What happens if an account holder is required to file an FBAR and fails to do so?
Failure to file an FBAR when required to do so may potentially result in civil penalties, criminal penalties or both. There is no two cases the same.
If you learn you were required to file FBARs for earlier years, you should file the delinquent FBAR reports and attach a statement explaining why the reports are filed late.It is best to hire or consult a FBAR expert.
No penalty will be asserted if the IRS determines that the late filings were due to reasonable cause.
There are numerous reasons that IRS will allow taxpayers to abate both penalties and interest. More can be found on our website. Go to the homepage.
Reasonable Cause for Late FBAR
Whether a failure to file or failure to pay is due to a reasonable cause is based on a consideration of the facts and circumstances of each unique case.
Reasonable cause relief is granted by the IRS when a taxpayer demonstrates that they used exercised ordinary business care and prudence in meeting your tax obligations but nevertheless failed to meet them.
In the abatement of penalties and interest, determining whether you exercised ordinary business care and prudence, the IRS will consider all available information,
1. The reasons given for not meeting your tax obligations,
2. Your compliance history with the IRS,
3. The length of time between your failure to meet your tax obligations and your subsequent compliance, IRS will want to see you took immediate steps to correct the action,
4. Documented circumstances beyond your control.
FBAR reasonable cause may be established if you show that you were not aware of specific obligations to file returns or pay taxes, depending on the facts and circumstances. Among the facts and circumstances that IRS will considered are:
a. Your education level, the higher the level the lesser the chance,
b. Whether or not you have previously been subject to the tax,
c. Whether you have been penalized by the IRS before,
d. Whether there were recent changes in the tax forms or law that you could not reasonably be expected to know about,
e. The level of complexity of a tax or compliance issue,
f. Reliance upon the advice of a professional tax adviser who was informed of the existence of the foreign financial account and the tax laws that apply,
g. Evidence that the foreign account was established for a legitimate purpose,
h. Evidence that there was no effort to intentionally conceal the reporting of income or assets.
As a general rule, Ignorance of the Law, if reasonable, along with a good faith effort to comply with the law if you could not reasonable be expected to know of the FBAR requirement.
As Former IRS agents there are many other compelling facts and factors for late FBAR Filing relief.
Call us today to find out the truth. 1-866-700-1040.