If you have offshore accounts or assets, it’s important for you to be aware of the standard protocol related to disclosing them to the Internal Revenue Service (IRS). Any money, trusts, inheritance, or corporate earnings that you have in a foreign bank account or foreign financial account is subject to reporting to the IRS.
If you do not disclose your offshore accounts, you could face fines, penalties, and even criminal charges that can severely impact yourself, your family, and your business.
Why Do I Have to Report the Offshore Accounts and Assets When the Money is Overseas?
Any United States Citizen, Foreign National subject to U.S. income tax, Legal Permanent Resident, or Expat who has an offshore account must report the accounts by law. Regardless of whether or not there is a tax liability, you must report the accounts on such forms as a Schedule B, FBAR, 8938, 3520, or more.
How Soon Do I Need to Disclose My Inheritance, Trust, or Corporate Assets?
By law, you must report the assets and or accounts immediately. Under the Foreign Act Tax Compliance Act (FATCA), all foreign bank accounts, foreign financial accounts, and foreign income must be reported to the IRS. Failure to do so could result in outstanding tax liabilities in addition to fines and penalties.
What Happens if I Can’t Prove I Reported My Accounts?
Your offshore accounts could be frozen or forfeited by the bank or foreign financial institution.
I Didn’t Know I Had to Disclose Them, What Can I Do Now?
Whether your failure to disclose your foreign accounts and assets was considered willful or not, you are still under obligation to disclose them. With the proper guidance of an experienced tax attorney who has knowledge of the correct protocol and forms to fill out, you can still report your foreign accounts and assets.
Can I Use a CPA, an Accountant or Enrolled Agent to Help Me Become Compliant?
Failing to disclose foreign accounts and assets as an attempt to avoid or evade tax compliance, or even out of ignorance, is a serious matter.
If you have received a FATCA letter from the IRS and need to be in compliance, it is in your best effort, and that of your family and your future, to secure a tax attorney with experience in offshore account and asset compliance.
A tax attorney is bound by attorney client privilege, assuring all your communication is completely confidential. As well, a tax attorney can help by filling out the proper forms, avoiding delays, and speeding up the process.
Mendes Weed, LLP has Experience with Offshore Account and Asset Disclosure and Compliance
If you or someone you know needs the advice and support of an experienced tax attorney with knowledge of foreign asset and account disclosure and compliance, Mendes Weed, LLP may be able to help.
We represent clients throughout Walnut Creek, Alamo, Danville, Blackhawk, Pleasanton, Livermore, Solano County, Alameda County, San Mateo County, Santa Clara County, San Francisco and Sacramento, and we’d be happy to represent you, as well.
Contact us and make an appointment, or visit our website for more information.
Disclaimer: The tips and materials provided in this email are for informational purposes only, offered as public service. No information in this email should be considered legal advice or used as a substitute for legal advice. For legal advice, you should contact an attorney directly.
Mendes Weed, LLP offices are located in Walnut Creek and our skilled attorneys provide family, tax, business and trust law assistance for clients. For your convenience, we also have attorneys' offices in San Francisco and Sacramento by appointment only.
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