![\"chancecard\"](\"http:\/\/cfo.markbaileyco.com\/wp-content\/uploads\/2009\/04\/chancecard-300x175.jpg\" "\\"Get")
Oversight of seemingly insignificant, immaterial assets such as bank balances could cost you big money in penalties.<\/p>\nOversight of seemingly insignificant, immaterial assets such as bank balances could cost you big money in penalties.<\/p>\n
The IRS has disclosure reporting requirements for ownership or control over foreign assets.\u00a0 The disclosures relate to control over a foreign\u00a0business entity or trust, receipt of gifts or inheritances from foreign sources, and ownership in (or signing authority for) a foreign bank or investment account.\u00a0 The penalties for not filing the disclosure forms on time, or incomplete filings, include both civil and criminal penalties, with civil penalties starting\u00a0start at a minimum of $10,000 per person, per year, per failure to file.<\/p>\n
The IRS recently announced a reduction in the Foreign Bank Account Reporting (FBAR) penalties and disclosure penalties for\u00a0those with an interest in foreign entities (foreign companies, foreign trusts, etc.) if they voluntarily disclose previously unreported information prior to September 23, 2009.\u00a0 This sounds great, but penalties are still being assessed at 20% of the maximum <\/em>value in the bank account at any point during the last 6 years (or 20% of the maximum value of the assets held by a business), which may be substantial.\u00a0 In certain circumstances the penalty may be reduced to 5%, but these cases are very limited.\u00a0 Even worse, an IRS memorandum <\/a>directs examiners that “no reasonable cause exception may apply” – so there is no getting out of these penalties because of an innocent mistake.\u00a0 This can be unfair, as many of those failing to file these forms don’t know that the requirement exists.\u00a0 The commissioner also threatened in a statement<\/a> that “the situation will only become more dire” for those who do not self-correct, directing examiners to pursue both civil and criminal penalties that are available for non-compliance.\u00a0 The good news is that if you self-correct in time, a “get out of jail free card” is still available.<\/p>\n","protected":false},"excerpt":{"rendered":" Oversight of seemingly insignificant, immaterial assets such as bank balances could cost you big money in penalties. The IRS has disclosure reporting requirements for ownership or control over foreign assets.\u00a0 The disclosures relate to control over a foreign\u00a0business entity or trust, receipt of gifts or inheritances from foreign sources, and ownership in (or signing authority … Continue reading “Get Out of Jail Free”<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[87],"tags":[83,84,85,86],"class_list":["post-120","post","type-post","status-publish","format-standard","hentry","category-tax","tag-disclosure-penalties","tag-fbar","tag-foreign-bank-account-reporting","tag-foreign-entities"],"_links":{"self":[{"href":"https:\/\/www.excelsisaccounting.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/120","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.excelsisaccounting.com\/blog\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.excelsisaccounting.com\/blog\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.excelsisaccounting.com\/blog\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.excelsisaccounting.com\/blog\/index.php\/wp-json\/wp\/v2\/comments?post=120"}],"version-history":[{"count":0,"href":"https:\/\/www.excelsisaccounting.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/120\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.excelsisaccounting.com\/blog\/index.php\/wp-json\/wp\/v2\/media?parent=120"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.excelsisaccounting.com\/blog\/index.php\/wp-json\/wp\/v2\/categories?post=120"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.excelsisaccounting.com\/blog\/index.php\/wp-json\/wp\/v2\/tags?post=120"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}