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Penalties For Unreported Foreign Bank And Financial Accounts

The law requires all U.S. persons having an interest in or signatory authority over one or more foreign financial accounts to file a form if the total value of the accounts exceeds $10,000 at any time during the calendar year. The IRS must receive the form on or before June 30th of the calendar year following the year for which the foreign accounts are being reported.

The scope of reportable financial accounts is broad. At the Baker Law Firm, P.C., we can help you comply with these reporting requirements and help you when you face a penalty. Since opening our doors in 1976, we have been committed to helping people throughout Connecticut with all types of tax issues.

Penalties And Offshore Tax Issues

There are a range of penalties for failing to file the FBAR form. If the failure is not willful, a civil penalty of up to $10,000 may be imposed, but the penalty can be avoided. The penalties for willful failure to file FBAR forms are much higher. The ceiling for this penalty is the greater of $100,000 or 50 percent of the balance in the accounts at the time of the nonfiling. A willful failure to file can also result in criminal penalties.

IRS examining agents have substantial discretion in determining whether a penalty should be imposed and the amount of the penalty. The IRS examiners have substantial discretion in this area. The statutory penalty regime that applies to delinquent FBAR filings is daunting. It is not automatic that the worst penalty results will be levied on you.

Our foreign bank and financial accounts attorney, Fred L. Baker, will develop and examine all facts related to the delinquency, and he will make the most persuasive and compelling argument that will lead the examiner to conclude that no penalty should be asserted or that a lesser sanction is more appropriate.

Experience Matters: Contact A Skilled Lawyer Today

The Baker Law Firm, P.C., represents individuals and businesses throughout Connecticut. Contact Danbury, Connecticut, tax law attorney Fred L. Baker at 203-648-4737 to arrange a confidential consultation about your tax issues.