You worked overseas for a few years and opened a bank account there for convenience sake… or you are a foreigner who immigrates to the US or simply files a US resident tax return and still have one or more bank accounts back home… or you are an expatriate permanently living and working in a foreign country and have a bank account where your salary is deposited. What is common in all these situations? That is right, you may be subject to foreign bank reporting requirements. Furthermore, you may be subject to foreign financial asset reporting requirements, which have different rules altogether.
FBAR (Foreign Bank and Financial Account Reporting) and FATCA (Foreign Account Tax Compliance Act) are two very important regulations that you should take time to learn and understand. While you do not have to read them in their entirety, asking Davidoff & Associates to interpret and apply these regulations to your particular situation could be the shrewdest move you will make in the entire year, especially if you are an owner or co-owner of foreign bank or financial accounts.
Unfortunately, your lack of knowledge about these regulations does not absolve you from the reporting responsibility. Penalties and other consequences (up to and including criminal prosecution) could be severe enough if you ignore these requirements or try to come clean on your own without consulting with a CPA and tax attorney. Do not attempt to handle this on your own – you may get into the trap you will not be able to come out of. Just contact us today to set up a free initial consultation. Start on the right path from the outset to minimize negative consequences.