New York Law Firm Assists Clients in Understanding FBAR Reporting
Many see New York City as the financial center of the United States, if not the world. Money from around the world flows into businesses and accounts in New York and is then distributed back into the world economy. It should come as no surprise that in a city with ties around the world that a significant number of individuals in New York own or have an interest in assets and accounts outside the United States. Diversifying one’s assets can be a smart way to protect oneself against unexpected losses: but, if you are not diligent in reporting your overseas accounts, you may find yourself in trouble with the Internal Revenue Service (IRS).
What is the “Report of Foreign Bank and Financial Accounts” (FBAR)?
If you are a United States citizen or business and have either a financial or a signatory interest in one or more financial accounts located outside the United States and the total of this account or these accounts was over $10,000 at any time during a calendar year, you may need to complete a Report of Foreign Bank and Financial Accounts with the IRS. “Financial accounts” may include bank accounts, trusts, mutual funds, brokerage accounts, and other similar financial accounts. The Report of Foreign Bank and Financial Accounts (FBAR) must be filed electronically no later than June 30 in the year following the reportable calendar year.
There are a number of exceptions to the FBAR reporting requirement: however, failing to timely file a correct FBAR can be subjected to civil penalties of up to $10,000 per violation, even if the mistake or failure was unintentional. If an error is determined to be willful, sanctions can be imposed up to $100,000 per violation or up to 60% of the account(s) value at the time of the violation. As you can see, failing to properly and timely complete a FBAR can result in serious financial harm.
Do not take chances when it comes to tax law matters. Turn to the Mehra Law Group to assist you with your FBAR report requirement. We can examine your circumstances and determine if you must file a FBAR report. If you are required to file a FBAR, we will help you properly complete the reporting documents and timely submit them, giving you peace of mind. Contact us today by calling (718) 347-6800 to enlist our help.