FBAR Amnesty Program
FBAR Amnesty Program: The IRS is the government agency in charge of enforcing the FBAR (FinCEN Form 114). FBAR is an international information reporting form that was initially developed by FinCEN (Financial Crimes Enforcement Network). In recent years, the Internal Revenue Service has become very aggressive on all matters involving foreign accounts compliance.
Therefore, if a U.S. person is out of compliance for not properly reporting their foreign bank and financial accounts to the IRS, they may become subject to fines and offshore penalties.
These FBAR penalties range from civil non-willful or civil willful penalties, up to the criminal FBAR penalties (which can include imprisonment).
IRS FBAR Amnesty Program Summary
The FBAR Amnesty Programs are programs developed by the Internal Revenue Service to assist Taxpayers who are already out of compliance for non-reporting.
Some of the more common programs, include:
- Voluntary Disclosure Program (VDP or “New” OVDP)
- Streamlined Domestic Offshore Procedures
- Streamlined Foreign Offshore Procedures
- Delinquency Procedures
- Reasonable Cause
Can I Just Start Filing FBAR This Year Instead?
No, unless the current year is the first-year you had an FBAR Reporting requirement.
If you had a prior year reporting requirement, but only begin to start filing in the current year (Filing Forward) it is illegal. In the world of offshore disclosure, this is referred to as an FBAR Quiet Disclosure.
The IRS has warned taxpayers that if they get caught in a FBAR Quiet Disclosure situation, it may lead to willful penalties and even a criminal investigation by the IRS Special Agents.
Our FBAR Lawyers Represent Clients Worldwide
Our FBAR Lawyer team specializes exclusively in international tax, and specifically IRS offshore disclosure.
Contact our firm today for assistance.