FBAR Late Filing Penalty
FBAR Late Filing Penalty: The FBAR is required to reported by U.S. Persons who meet the threshold requirements for filing. The form was previously due to be filed by June 30th, with no extension. The filing date was then revised, and the FBAR is now due on the same date your tax returns are due.
In addition, the FBAR due date is currently on Automatic Extension, which means that taxpayers have until October to file the FBAR, without having to formally request an extension (This rule may change at anytime).
If a filer misses the reporting deadline, they may be subject to FBAR Penalties for the late or delinquent filing.
Can I Avoid FBAR Penalties for Late Filing?
Generally, you may be able to avoid (or at least significantly reduce) penalties for FBAR Late Filing.
Typically, the IRS pursues non-willful penalties.
Non-willful penalties range from a warning letter in lieu of penalties, all the way up to a $10,000 per account violation, per year — up to a maximum amount (usually 50% of the total balance). Willful penalties are generally 50% value of the maximum balance for the unreported accounts or $100,000 — whichever is higher.
*The $10,000 and $100,000 adjust for inflation.
Foreign Account Amnesty Programs
The Internal Revenue Service has also developed various FBAR Amnesty Programs for late filing of foreign accounts, assets, and investments.
Collectively, the programs are referred to as Offshore Voluntary Disclosure.
The IRS can end these programs at any time (OVDP was suddenly ended in 2018), and can increase the penalty at anytime as well.
In addition, if the IRS gets to you first, you lose the right to submit to the programs.
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
Our FBAR Lawyers Represent Clients Worldwide
Our FBAR Lawyer team specializes exclusively in international tax, and specifically IRS offshore disclosure.
We are the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants, and Financial Professionals across the globe. Our attorneys have worked with thousands of clients on offshore disclosure matters, including FATCA & FBAR.
Each case is led by a Board-Certified Tax Law Specialist with 20 years of experience, and the entire matter (tax and legal) is handled by our team, in-house.
*Please beware of copycat tax and law firms misleading the public about their credentials and experience.
Interested in Learning More about Golding & Golding?
No matter where in the world you reside, our international tax team can get you IRS offshore compliant.
Golding & Golding specializes in FBAR and FATCA. Contact our firm today for assistance with getting compliant.