FBAR and FATCA Filing Options
Much has been written about FBAR and FATCA for the past six years and yet, there is still a great deal of confusion about reporting foreign bank accounts. Like a deer caught in headlights, many are frozen with fears about potential FBAR penalties but lack a concrete and manageable plan to deal with this issue.
On June 18, 2014, IRS commissioner John Koskinen said, “…we have made important adjustments to provide opportunities for all U.S. taxpayers to come in, including those who are not willfully hiding assets.” These adjustments include two Streamlined Filing Compliance Procedures (SFCP) to eliminate or lower FBAR penalties.
Starting July 1, 2014, US taxpayers with undisclosed foreign bank accounts have four options:
The IRS provides information on the options available. To access IRS information click this link.
As an additional service to clients, KAGW is also offering documents with expanded information on foreign bank account rules and requirements. These include:
FBAR and Filing Options: This document provides expanded information on the four options offered by the IRS to US taxpayers. To download the document in PDF format, click here.
International Inbound: This document looks at filing issues facing immigrants who came in the 1970s and 1980s and even the early 1990s. To access the document in PDF format, click here.
International Outbound: US residents or US citizens need to report worldwide income to the US government, even if they don't have to pay any US income tax. Not reporting can carry severe penalties. This document provides information on the options available. To download the document in PDF format, click here.
Streamlined Filing Compliance Procedures: This document discusses the streamlined filing compliance procedures available to foreigners who are permanent US residents or who have been present in the US for more than 183 days during the last three years and have more than $10,000 in foreign financial accounts (FFAs). To view the PDF document, click here.
Tax Residency Rules: The document examines tax residency rules and the potential tax impact of living in another state but having a business in California. To access the PDF document, click here.
National Tax Offices Services
Foreign Bank Account Reporting (FBAR)
Donald A. Barnes
Tax Law Attorney
Professional Associations and Memberships: Chairman, AICPA Tax Legislation and Policy Committee, 2004 – 2006.
Past Employment Positions: Assistant to the Commissioner of Internal Revenue, Internal Revenue Service, during the administration of President George H.W. Bush; Internal Revenue Service, Office of Chief Counsel (Income Tax & Accounting Division), Washington, D.C., 1991 - 1998; Partner, National Tax Office of BDO USA, LLP, a CPA firm; Law practice at Baker & Hostetler and Davis Graham & Stubbs, Denver, Colorado; Summer law clerk at the U.S. Tax Court, for the Honorable Samuel B. Sterrett and William A. Goffe.
Education: University of Virginia School of Law, Charlottesville, Virginia; University of Pennsylvania's Wharton School With Honors.
Areas of Practice: Federal Taxation.
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