Most Frequently Asked Questions about FBAR Filing Answered

SEEK ING INFORMATION ABOUT FBAR FILING? WELL, YOU ARE AT THE RIGHT PLAC E. TODAY WE HAV E DEC IDED TO SHARE SOME

V ITAL INFORMATION ON THIS SUBJEC T. EV ERY TAXPAYER WHO IS ENGAGED IN SOME C ROSS -BORDER AC TIV ITIES SHOULD K NOW

ABOUT THE IMPORTANC E AND C RITIC ALITY OF THE FBAR FILING. DON’T CONSIDER IT A PART OF YOUR ROUTINE ANNUAL TAX RETURNS FILING. IT IS SOMETHING ENTIRELY DIFFERENT. IN REALITY, IT IS NOT SOMETHING GENERAL IN NATURE. AS A

TAXPAYER WHO DON’T HAV E ANY FOREIGN FINANC IAL ACC OUNT OR ANOTHER K IND OF ASSETS OUTSIDE THE USA, YOU DON’T

HAV E TO DO ANYTHING AC ROSS THE FBAR. SO, LET US PROC EED WITH SOME OF THE MOST BASIC FAQS.

How can I Proceed with the FBAR Filing?

Luckily speaking the filing procedure of this report is quite a simple one. As an individual or even in the case of filing as a group of

persons what all you need is the submission of an online or e-form. Here, it is important to know one thing. The entire of FBAR filing system is managed directly by FinCEN. In other words, the IRS is

not directly involved in this procedure. For more information, you can always contact someone from an established firm just like,

Gordon Law Group.

If there are more options available?

Yes! The FBAR filing is only one option. In case if you don’t want to proceed with this one then don’t worry. We still have several other options available. As we mentioned above, the IRS is not relevant in case if you are going for an FBAR. However, they do have their procedures. Taxpayers can think about taking part in the OVDP. Another option that remains available is the filing of delinquent

tax returns

If there are any limits?

Definitely! Anyone who do have cash or other assets with a net value of less than $10K then they can enjoy an exemption. But

those who are owing more than that should consider FBAR Filing. This activity is done on an annual basis.

What about the Exceptions?

In some cases, the bearer of financial accounts can enjoy some degree of exemption. However, the same is not true for the individuals having

funds or external elsewhere. Let us include some examples,

Those who are already a part of a consolidated FBAR are not liable for a separate filing

Foreign accounts held and maintained by governmental entities can enjoy an exemption from FBAR filing

Offices of the international firms are not accountable for declaring the details of their foreign assets and accounts

What is reported through FBAR Filing?

The highest value of the financial account under consideration is reported using this process. In the light of the available guidelines, every account maintained by a US citizen in a financial institution

(usually a bank) located on the premises of the United States is needed to be reported.

What are the consequences of not filing?Well, willfully avoiding this practice and keeping your foreign accounts hidden are considered as a criminal offense. The IRS and other financial

regulation bodies do have strict procedure and rules for dealing with such taxpayers. Let us provide you with a few kind of penalties so you

can understand how dangerous it could be for you,

Those who lagged behind willfully could face fines up to $10000.

Much higher penalties are levied against those who willfully kept themselves from declaring their foreign assets. The value of a penalty

could be up to $500000.

In some cases, 50% of your entire outstanding could also be claimed by the FinCEN

Do I have any other option available?

Yes! FBAR filing is a provision provided and maintained by the FinCEN. The IRS, on the other hand, has their arrangements

available. Those who failed in filing their FBARs can think about proceeding with options like, Amended and Delinquent tax

returns. In addition to this a very particular program, Offshore Voluntary Disclosure Program is also available these days. So,

discuss your case with a good lawyer before finally moving on with the FBAR Filing.

Contact Us

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