The IRS is searching for individuals and businesses who have failed to report foreign income.
In an effort to combat money laundering and the financing of terrorist groups, the Bank Secrecy Act (BSA) was amended to incorporate the provisions of the USA Patriot Act which requires every bank to adopt a customer identification program as part of its BSA compliance program.
Foreign Bank Account Reporting (FBAR) filings are often required for those who have financial interest or signature authority over foreign financial accounts like bank accounts, trusts, mutual funds, and other types of foreign accounts.
If any of these accounts exceed $10,000 at any point during the calendar year, you need to file an FBAR, even if you have reported the income on your annual tax return.
This applies to U.S. residents, U.S. citizens, entities, corporations, partnerships, LLCs, trusts, and estates. A person holding an account that produces no taxable income can sometimes also be obligated to report it. Some exclusions may apply.
Many of our clients are surprised to learn that U.S. citizens and resident aliens of the United States who live abroad are taxed on their worldwide incomes.
You may qualify to exclude from income up to an amount of your foreign earnings that is adjusted annually for inflation.
You may also qualify to exclude or deduct certain foreign housing amounts.
The tax professionals at Tax Help Advisors, LLC are experienced with FBAR and in dealing with foreign tax problems. Our Certified Tax Resolution Specialists can help you deal with penalties, settle your tax debt, and avoid future foreign tax problems.
Call us today at (704) 912-4002 to learn if you are in compliance with reporting your foreign income or account holdings.
The tax professionals at Tax Help Advisors, LLC are experienced with FBAR