Boris Benic and Associates LLP - Certified Public Accountants and Consultants - Garden City, Long Island, New York

Boris Benic and Associates LLP - Certified Public Accountants and Consultants - Garden City, Long Island, New York

Services - Tax Services - Boris Benic and Associates LLP - Certified Public Accountants and Consultants - Garden City, Long Island, New York
 

Foreign Bank and Financial Accounts | FBAR

 
 

To ensure that U.S. taxpayers are properly reporting and pay taxes on funds held in foreign accounts, the IRS now requires “U.S. individuals” to submit a Report of Foreign Bank and Financial Accounts (FBAR) filing. The report is only necessary if the value of the account is greater than $10,000 (USD) during any period during the tax year.

 

Qualifying Individuals

The filing requirements apply to U.S. individuals which includes; citizens of the United States, green card holders, domestic partnerships, domestic corporations, domestic trusts, and individuals that have signatory authority over a non-U.S. bank account. It is very important to be aware that there are NO special rules for minors; as a result minors who meet the listed criteria must also submit a FBAR filing.

 

Qualifying Accounts

The IRS has provided specific direction on what qualifies as a foreign financial account. Qualifying accounts include bank accounts (savings, checking, and deposits), securities or brokerage accounts, mutual funds, debit and prepaid credit cards, annuities and pension plans, retirement plans, interests in partnerships, trust and pass through entities with foreign accounts, and insurance policies with a cash surrender value.

 

FBAR Filing Penalties

There are currently two categories of penalties applicable to FBARs including willful and non-willful. Regardless of the category, the IRS assesses penalties on a per account basis and not on a per filing basis. So, one individual could face a large fine based on the number of accounts they control. Penalties are generally assessed for each year there is a violation. Penalties range from fines of $10,000 per violation per year to criminal penalties including a $250,000 fine and 5 years imprisonment for willful neglect in reporting.

 

Contact Our FBAR Professionals!

Do you have a foreign financial account? If so, it’s important to understand your filing obligations. The FBAR filings are complex and require the assistance of a professional to navigate. There have been several modifications and changes to the regulations since they were initially implemented. For additional information, please click here to contact a member of our international tax team. In a brief consultation he can assess your situation and determine the next steps to attain compliance.

 
     
     

Boris Benic and Associates LLP - Certified Public Accountants and Consultants - Garden City, Long Island, New York

Testimonial
Corporate tax planning and compliance is a highly technical and ever-changing field, where mistakes can be very costly. We have found Boris Benic and Associates to be very current on the tax codes that must be considered when making business decisions. Their responsiveness, customer focus and understanding of the business context surrounding those decisions is exceptionally good. We are very pleased with the level of service received, and would recommend them highly.

CFO
Harry Abrams, Inc.
 
 
   

Boris Benic & Associates is Long Island and New York City (NY) certified public accounting firm. We provide audit, tax and consulting services to closely businesses, established companies and start up organizations in Long Island, Garden City, Manhattan, NYC, and Queens (NY).