Penalties Will Be Limited

The IRS Tax Amnesty for Foreign Bank Account Report (“FBAR”) filings is ending this coming September 23rd. Individuals and entities who have foreign financial accounts are required to file Form 90-22.1 with the IRS every June 30th.

Those who don’t file by June 30th next year are subject to criminal penalties of up to five years in jail and a fine of $250,000. In addition, a willful failure to file the FBAR can result in a civil penalty of the GREATER of $100,000 or 50% of the balance in the account. This penalty can be imposed on an annual basis, and can exceed the balance in the account.

Those who come forward by September 23rd will have penalties limited.

Since early in the year, the IRS has been advertising its offshore voluntary disclosure program under which the IRS will not to bring criminal prosecutions of owners of foreign bank accounts if they work with the IRS Criminal Investigation Division by no later than September 23rd.

The IRS has a FAQs page worth reviewing too.

Get help NOW! Call tax attorney Mitchell A. Port at (310) 559-5259.