Foreign Bank Accounts (FBAR)
Delinquent FBAR Submission Requirements
Some individuals with foreign bank accounts may have failed to file a required Report of Foreign Bank and Financial Accounts (FBAR) but are not eligible for the OVDP or the Streamlined Filing Compliance Procedures because they do not need to file delinquent or amended returns to report and pay additional tax. You may qualify for the IRS Delinquent FBAR Submission Procedures if you:
- Have not filed a required Report of Foreign Bank and Financial Accounts (FBAR) (FinCEN Form 114, previously Form TD F 90-22.1);
- Are not under a civil examination or a criminal investigation by the IRS; and
- Have not already been contacted by the IRS about the delinquent FBARs.
- Failure to file a required FBAR can carry penalties as high as $10,000 for a non-willful violation and $100,000 or more for a willful violation. Under the Delinquent FBAR Submission Process, the IRS will not impose a penalty for filing delinquent FBARs if you:
- Properly reported on your U.S. tax returns;
- Paid all tax on the income from the foreign financial accounts reported on the delinquent FBARs; and
- Have not previously been contacted regarding an income tax examination or a request for delinquent returns for the years for which the delinquent FBARs are submitted.
FBARs will not be automatically subject to audit, but may be selected for audit through the existing audit selection processes that are in place for any tax or information returns.
If you have delinquent FBAR filings or other offshore tax issues, contact Rosefelt Tax Law at 866-995-0061 or reach out by completing our ten-second contact form to know your real options. We serve clients from around the world at our offices in Bethesda, Maryland (Greater Washington D.C. Metro area), or from our satellite offices by appointment in Fairfax, Virginia and Saint Petersburg Florida.