Foreign Financial Account Attorney
The Bank Secrecy Act of 1970 requires anyone who has foreign financial accounts totaling $10,000 or more in any year to file a Report of Foreign Bank and Financial Accounts (called an FBAR) by June 30th of of the next year. Failure to do so can result in very large fines. In addition, you may also face criminal charges.
A new Offshore Voluntary Disclosure Initiative (OVDI) was announced by the Internal Revenue Service on February 08, 2011, requiring action by August 31, 2011. The penalty structure has evolved slightly from the last program and may be financially harsher on some but opportunities may exist for others.
Taxpayers who have made prior disclosures under the Offshore Voluntary Disclosure Program (OVDP) that ended on October 15, 2009, may have new opportunities under the rules of the OVDI for a determination of reduced penalties and a potential refund of penalties paid.
In addition to the federal programs, on February 15, 2011, a bill was introduced in the California State Senate proposing a Franchise Tax Board voluntary compliance initiative for abatement of penalties against taxpayers after their compliance with federal programs.
If you have received a significant gift or inheritance from a foreign source or invest in a foreign business, you too may also be required by law to file an informational report.
If you have foreign financial accounts or have inherited money that is still overseas, you should seek help from a knowledgeable tax attorney. It could save you thousands of dollars and untold headaches.
John D. Teter has extensive experience helping people comply with foreign investment reporting requirements under Title 31. He also provides advice and representation in state and federal tax matters. Mr. Teter can explain what you need to do to comply and discuss how he can help you deal with any tax or reporting problems you may face.
Contact us today for a consultation.
The IRS Is Watching
In recent years, the IRS has been paying much greater attention to foreign financial matters. It is looking for people with foreign accounts who are failing to file FBAR reports as required by law. When it finds them, the consequences can be severe. If it determines that the failure to report was intentional, it can impose a penalty totaling $100,000 per account per year or up to half of the balance of the account per year.
If a significant gift or inheritance is not reported, it may cost the recipient up to 35 percent of the value.
Some people try to solve their problem through a "quiet disclosure," meaning that they file an FBAR report, informational report or amended tax return to declare their foreign financial account, gift, inheritance or foreign source income. By doing so, they hope to escape notice by the IRS. But the IRS is watching for people making quiet disclosures, and when it finds them, the IRS has stated that it will treat them unfavorably.
If you think you are in danger, call John D. Teter Law Offices today to schedule a consultation.
How We Can Help
John D. Teter has the experience and knowledge to help you deal with your problem. Mr. Teter can:
- Inform you if you must report your foreign financial accounts and foreign financial affairs and if you have a problem
- Develop a strategy designed to deal effectively with any tax problems you face
- Represent you in all dealings with the IRS
Our goal will be to help you comply with the law and minimize any tax consequences you may face.
Contact a Lawyer Today
For a consultation about an offshore bank account disclosure matter, contact John D. Teter Law Offices.
Located in San Jose, California, we advise and represent clients from around the world.
