Anthony Verni, Tax Attorney and CPA at Fresh Start Tax, says, “Those taxpayers that fail to file the required form may be subject to civil penalties, criminal penalties, or both.
Fort Lauderdale, FL. (PRWEB) May 30, 2013
Taxpayers with overseas bank accounts need to heed this Internal Revenue Service ("IRS") FBAR deadline of June 30th very seriously. The IRS is now directing a lot of its resources and efforts toward tax compliance and offshore tax evasion. This includes beefed up enforcement, criminal prosecution and implementation of third-party reporting through the Foreign Account Tax Compliance Act (FATCA).
“With the Offshore Voluntary Disclosure Program (“OVDP”) so successful, the IRS is going after those persons who are required to file the FBAR and have failed to do so. Many taxpayers are unaware that failing to file can lead to civil penalties, criminal penalties or possible prison sentences,” states Anthony Verni.
So far, the IRS’s OVDP has exceeded the $5 billion mark in collections and it recently released new details regarding tightening the eligibility requirements. The program has collected more than $5 billion in back taxes, interest and penalties from 33,000 voluntary disclosures made under the first two programs.
Who is required to file the FBAR?
If you have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account, the Bank Secrecy Act may require you to report the account yearly to the Internal Revenue Service by filing Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts.
The FBAR is required because foreign financial institutions may not be subject to the same reporting requirements as domestic financial institutions. The FBAR is a tool to help the United States government identify persons who may be using foreign financial accounts to circumvent United States law. Investigators use FBARs to help identify or trace funds used for illicit purposes or to identify unreported income maintained or generated abroad.
For further information about Foreign Income and FBAR regulations, please contact Fresh Start Tax, LLC at 866-700-1040.
Fresh Start Tax is a professional tax resolution firm, A+ Rated and accredited by the Better Business Bureau. On staff are Board Certified Tax Attorneys, CPAs, and Former IRS Agents, Managers and Instructors. We have over 206 years of professional tax experience and over 60 years of direct IRS experience. To learn more about Fresh Start Tax, LLC, please visit http://freshstarttax.com or call us at (866)700-1040.