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Foreign Bank Account Reports Due June 30

By admin of MillarLaw A Professional Corporation On Sunday, May 22, 2016

U.S. Taxpayers who directly or indirectly controlled foreign financial accounts in 2015 are reminded that the deadline to file a Report of Foreign Financial Account (FBAR) FinCEN Form 114 is June 30. Taxpayers with unfiled FBARs for prior years should be aware of that the information exchange agreements under the Foreign Account Tax Compliance Act have bee implement:

“The IRS said it received digital information about U.S. taxpayers’ foreign accounts from governments and firms around the world, and it sent information on foreigners’ U.S. accounts to government authorities in as many as 34 countries. While governments have exchanged such information in the past, the sharing wasn’t automatic and the scope was often far narrower. The deadline for the exchange to begin was Sept. 30.2015”

Taxpayers who are required to file an FBAR but fail to do so face penalties ranging from $10,000 per account per year to the greater of $100,000 or 50% of the highest annual account balance for up to 6 years. As a result of the information exchange taxpayers who have not come forward to date, may open their mail to find a letter from the IRS assessing a 50% penalty, without any warning. There are still voluntary disclosure options for taxpayers who qualify. We can determine if you meet the criteria and how best to come forward

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Millar Law A Professional Corporation

1900 Avenue of the Stars, STE 2300 | Los Angeles, CA 90067
Phone: 310.486.6705 Fax: 310.861-1863
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