Foreign Accounts: The Penalties Can Destroy You
FBAR penalties for willful violations can reach $100,000 or 50% of the account balance per year. Per violation. Per year. If you have unreported foreign accounts, this is not something to handle yourself or with a CPA. You need a tax attorney.
FBAR Filing Requirements
If your foreign financial accounts exceeded $10,000 in aggregate value at any point during the year, you must file FinCEN Form 114. This is separate from your tax return and has its own deadline.
FATCA and Form 8938
FATCA requires reporting foreign financial assets above certain thresholds on Form 8938. The thresholds vary by filing status and whether you live in the U.S. or abroad. This overlaps with but is separate from FBAR.
Streamlined Filing Procedures
If your failure to report was non-willful, the IRS Streamlined Filing Compliance Procedures can bring you into compliance with reduced or eliminated penalties. I evaluate whether you qualify and handle the entire process.
When Privilege Matters Most
Foreign account cases often involve potential criminal exposure. Willful failure to file an FBAR is a federal crime. Attorney-client privilege is not optional in these cases. It's essential.