FBAR Reporting – Do not live in Fear – Attorneys, CPA's, Former IRS – FBAR Experts
FBAR Reporting – Do not live in Fear – Attorneys, CPA’s, Former IRS – FBAR Experts 1-866-700-1040
If you need to file FBAR give us a call so you can stop living in fear.
The process is simple so do not get caught up in the worry of your situation. We have helped hundreds upon hundreds of persons. We are FBAR experts.
Call us today free and for a free initial tax consultation and find out the different options that you have available to you on how to report, pay and to reduce any exposure you have as a result of Fbar.
We are comprised of tax attorneys, certified public accountants, and former IRS agents and managers with 60 years of direct work experience at the Internal Revenue Service.
We have worked as supervisors, managers, and teaching instructors with the IRS as well as appeals agent’s. We know every aspect of the Internal Revenue Service. Our firm has a total of 206 years in this tax field industry.
We are A+ rated by the Better Business Bureau and have been in private practice since 1982.
IRS has collected over $5 Billion so far on FBAR Reporting alone
The United States government has collected over $5 billion in the last three filing season as a result of Fbar. They are on a tear because of the vast amount of revenue that is out there and available because taxpayers have not filed and have not reported Fbar.
Reach out to the IRS first on FBAR Reporting
It is critical for taxpayers to find the IRS before they find them.
The process is very simple and there are multiple solutions on how to remedy your problem. Most of these cases are very simple cases and can be resolved easily for a few dollars.
FBAR Reporting Filing Criteria
In order to determine whether or not the FBAR is required, all of the following must apply:
1. The filer is a U.S. person;
2. The U.S. person has a financial account(s);
3. The financial account is in a foreign country;
4. The U.S. person has a financial interest in the account or signature or other authority over the foreign financial account; and,
5. The aggregate amount(s) in the account(s) valued in dollars exceed $10,000 at any time during the calendar year.
What is a U.S. Person
A U.S. person is defined by reference to three sources. 31 U.S.C. 5314 and 31 C.F.R. 103.24 identify persons who may be subject to the FBAR reporting requirement.
The FBAR instructions identify a smaller group of persons who must file FBARs than could have been required, under the statute and regulations, to file.
“The Secretary of the Treasury shall require a resident or citizen of the United States or a person in, and doing business in, the United States, to keep records, file reports…” and that ” The Secretary may prescribe a reasonable classification of persons subject to or exempt from a requirement under this section or a regulation under this section” . 31 U.S.C. § 5314
Each person subject to the jurisdiction of the United States (except a foreign subsidiary of a U.S. person)…shall provide information specified in a reporting form prescribed by the Secretary. 31 C.F.R. § 103.24
The instructions to the July 2000 FBAR (the current version) define “United States person” as “a citizen or resident of the United States, a domestic partnership, a domestic corporation or a domestic estate or trust.”
“United States” includes the states, territories, and possessions of the United States. 31 C.F.R. 133.11(nn)
U.S. Person: Definition
A citizen of the United States has a U.S. birth certificate or naturalization papers. Documents to substantiate citizenship, however, would not normally be requested as part of the FBAR examination.
A “resident” of the United States is a permanent resident. “Permanent resident” is not defined in the FBAR instructions, regulations, or statute. The definition of “resident alien” found in IRC § 7701(b) is not applicable for FBAR purposes. The plain meaning of the term ” resident” (in this context, someone who is living in the U.S. and not planning to permanently leave the U.S.) should be used for FBAR examination purposes.
Although IRC § 7701(b) is not applicable, an individual can establish that he is not a resident for FBAR purposes if he can show that none of the following three criteria apply:
The green-card test – Individuals who at any time during the calendar year have been lawfully granted the privilege of residing permanently in the U.S. Under the immigration laws automatically meet the definition of resident alien under the green-card test; or
Individuals who are not lawful permanent residents are defined as resident aliens under the substantial-presence test if they are physically present in the U.S. for at least 183 days during the current year, or they are physically present in the U.S. for at least 31 days during the current year and meet the specifications contained in IRC § 7701(b) (3) ; or
The person files a first year election on his income tax return to be treated as a resident alien under IRC § 7701(b) (4).
Therefore, if none of the three criteria listed above apply, then the person is not a resident for FBAR purposes.
For FBAR purposes, the definition of “person” also includes a corporation, trust, or partnership.
A certificate of incorporation from a state of the United States establishes that the corporation is a U.S. person.
A foreign subsidiary (a subsidiary that is not incorporated in the United States) of a U.S. person is not subject to the FBAR filing requirements under 31 C.F.R. § 103.24.
The U.S. parent is, however, considered to have a financial interest in any foreign financial account owned by its subsidiary and will file the FBAR on such an account.
A corporation that owns directly or indirectly more than a 50 percent interest in one or more other entities is permitted to file a consolidated FBAR, on behalf of itself and the other entities.
The consolidated report must include a list of the entities. An authorized official of the parent corporation should sign the consolidated report.
A Financial Account
A financial account includes a:
Bank account, such as a savings, demand, checking, deposit, time deposit, or any other account maintained with a financial institution or other person engaged in the business of a financial institution.
A bank account set up to secure a credit card account is an example of a financial account. An insurance policy having a cash surrender value is an example of a financial account.
Securities, securities derivatives, or other financial instruments account.
Other financial accounts
Other financial accounts generally encompass any accounts in which the assets are held in a commingled fund and the account owner holds an equity interest in the fund.
A mutual fund account is an example of such an account.
Individual bonds, notes, or stock certificates held by the filer are not a financial account.
Foreign Financial Account
Generally, an account in a foreign country includes all geographical areas located outside the United States.
The location of an account, not the nationality of the financial institution with which the account is held, determines whether the account is in a foreign country.
Any financial account (except accounts maintained with a U.S. military banking facility) that is located in a foreign country should be reported, even if the account is held with a branch of a United States financial institution located abroad.
The FBAR is not required for an account maintained with a branch, agency, or other office that is located in the United States even though the financial institution itself may be foreign.
The United States includes the states of the United States, the District of Columbia, the Indian lands (as defined in the Indian Gaming Regulatory Act), and the territories and insular possessions of the United States. Examples include the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa and the Commonwealth of the Northern Marianna Islands.
An account is not considered foreign if held in an institution known as a “United States military banking facility” (or “United States military finance facility” ) operated by a United States financial institution designated by the United States Government to serve U.S. Government installations abroad, even if the United States military banking facility is located in a foreign country .
The existence of a foreign financial account may be discovered during an income tax or Bank Secrecy Act (BSA) examination.
Examples of such occurrences include:
When inspecting a tax return as a part of pre-contact analysis (for example, Form 1040 Schedule B Part III has questions pertaining to foreign accounts).
When conducting an income probe performed during an income tax examination.
When interviewing a taxpayer.
When conducting a BSA examination of a business, such as a money transmitter, that may routinely transmit funds overseas. Note that such businesses may or may not have a financial interest in, or authority over, a financial account located in a foreign country even though they transmit funds to an account overseas
Call us today for a free initial tax consultation about Fbar reporting. Stop living in fear. Contact experienced tax attorneys, certified public accountants or former IRS agents and managers.
FBAR Reporting – Do not live in Fear – Attorneys, CPA’s, Former IRS – FBAR Experts