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Elk Grove Offshore Accounts Foreign Trusts Disclosure

When opening an offshore account or a foreign trust, you should be aware of all tax regulations that may affect your interest in these financial accounts. However, if you neglect to report your foreign accounts or income to the Internal Revenue Service and other appropriate tax agencies, this could result in a number of serious tax penalties. If you need legal assistance to manage your tax liability for offshore accounts and foreign trusts, you should consult with an experienced Elk Grove offshore account and foreign trust disclosure attorney today.

The NewPoint Law Group, LLP is here to offer you legal representation that is tailored to your financial needs. We understand the difficulty of judging your tax liability based on your foreign accounts and income, and we are here to address all your tax concerns. To schedule a confidential legal consultation to discuss your foreign income tax liability, contact the NewPoint Law Group, LLP at 800-358-0305. You may also contact the firm online to schedule your confidential appointment.

Elk Grove, CA Reporting Requirements for Offshore Accounts

Taxpayers that have an interest in foreign financial accounts must disclose these accounts to the Treasury Department as a part of the Bank Secrecy Act (BSA). The BSA was primarily passed in order to stop criminals from using foreign banks and offshore accounts to launder money and perform other illegal activities away from the eyes of United States tax agencies.

Any person or entity that is classified as a United States person is expected to abide by the BSA. This means whether you are a citizen, corporation, resident, or other types of U.S. person, failing to report your foreign accounts according to BSA guidelines will result in tax penalties or possible criminal charges.

A Report of Foreign Bank and Financial Accounts (FBAR) must be made if the following is true of a U.S. person:

  • The U.S. person has a financial interest or dominion over at least one financial account based outside of the United States, and

  • The value of all those foreign financial accounts totaled more than $10,000 when aggregated at any point during the calendar year

It is important to note that a taxpayer cannot evade FBAR reporting requirements by alleging that their foreign financial account did not earn any income during the year. As long as a taxpayer has a foreign financial account, they are subject to FBAR reporting laws.

There are some exceptions to FBAR reporting. For example, if a taxpayer has a Correspondent or Nostro account, they will not need to report the value of these accounts. There are other exceptions to FBAR reporting requirements where a taxpayer does not have to report their foreign accounts:

  • The foreign account is owned by a governmental entity

  • The foreign account is owned by an international financial institution

  • The foreign account is held in an individual retirement account (IRA) you own or an IRA of which you are the beneficiary

This is not a comprehensive list. Our firm can work with you to determine whether you are exempt from foreign financial account reporting laws. You should also be aware that while your foreign account reporting is due on April 15 of each year, you do not file the FBAR in conjunction with your federal tax return.

To learn more about reporting for foreign trusts, you should continue reading and consider working with an experienced Elk Grove foreign trust disclosure attorney.

Elk Grove, CA Foreign Trust Disclosure Laws

If you are designated as a U.S. person, and you own a foreign trust or perform transactions with foreign trusts, you must be mindful of how this might affect your tax reporting requirements. The last scenario you want to face is a large tax bill or criminal charges because you were ignored your foreign trust disclosure requirements.

You should never blindly follow the word of foreign institutions that may suggest that your foreign trust will not affect your U.S. tax liability as this is a common way that taxpayers end up in tax or legal trouble. Consulting with an experienced foreign trust disclosure attorney will help you avoid these issues.

If you are a U.S. person that is the owner of a foreign trust, you will be subject to taxes based on the income earned by that trust. Additionally, if you are the beneficiary of a foreign trust or you transferred assets to a foreign trust, you may also be subject to foreign trust disclosure laws. Note, however, that your reporting requirements for foreign trusts will vary depending on whether you are an owner, beneficiary, or transferor of assets. This means that you may have to use different filing forms and adhere to different types of tax laws.

The NewPoint Law Group, LLP is here to help you unravel complex tax laws that apply to your foreign trust accounts so that you can avoid tax penalties, which can total up to $80,000 or more if you fail to report your foreign income properly. Do not wait to speak with an experienced Sacramento tax attorney if your tax filing date is quickly approaching.

Consult with Our Experienced Elk Grove Offshore Accounts and Foreign Trusts Disclosure Lawyers Today

If you need legal assistance to handle disclosure for offshore accounts and foreign trust, you should consult with an experienced Elk Grove offshore account and foreign trust disclosure lawyer. The skilled legal team at the NewPoint Law Group, LLP possesses years of tax law experience, and we are prepared to help you avoid tax penalties regarding your foreign assets. To schedule a confidential legal consultation to discuss your tax issues, contact the NewPoint Law Group, LLP at 800-358-0305. Our legal team may also be contacted online to schedule a consultation.

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