Elk Grove FBAR Lawyers
Understanding the reporting laws for foreign financial accounts can be complicated for a taxpayer that is unfamiliar with the process. If you are unsure of how to report this income and you make a mistake, this could result in a number of issues with your tax return. Fortunately, you do not have to handle your foreign account reporting alone. If you need assistance with filing taxes for your foreign accounts, you should speak with an experienced Elk Grove FBAR lawyers as soon as possible.
The NewPoint Law Group, LLP is here to offer you the legal representation necessary to handle your tax liability. Our firm understands that it can be difficult to keep track of your tax liability for foreign assets, and we are here to alleviate your concerns. To schedule a confidential legal consultation to discuss your tax liability, you should contact the NewPoint Law Group, LLP at 800-358-0305. You may also contact the firm online to schedule your consultation.
How FBAR Reporting Works in Elk Grove, CA
The Bank Secrecy Act is a piece of legislation that was passed with the intention to deter and prevent criminals from using foreign financial institutions to launder money. As a result, taxpayers that have foreign financial accounts like bank accounts, mutual funds, brokerage accounts, and other types of accounts will have to report that income to the Treasury Department. A taxpayer can file a report with the Treasury Department by utilizing FinCEN Form 114, also known as a Foreign Bank and Financial Accounts Report (FBAR).
Taxpayers that Must File an FBAR
There are a number of people and entities that must file an FBAR. For example, U.S. citizens, residents, corporations, limited liability companies, and many other holders of foreign accounts must report their foreign income. Specifically, these taxpayers must file an FBAR under the following circumstances:
- A taxpayer has a financial interest or control over a financial account located in a different country
- The aggregate value of all foreign accounts was over $10,000 at any point during the calendar year
It is important to note that the Internal Revenue Service does not consider whether a foreign account has produced income during the calendar year. For FBAR purposes, it only matters that a taxpayer owns or controls foreign accounts that exceed $10,000 in total.
Foreign Accounts that Do Not Have to be Reported
A taxpayer should also be aware that there are certain foreign accounts that do not have to be reported via FBAR:
- Accounts owned by a government entity
- Accounts owned by an international financial institution
- Accounts maintained by a U.S. military banking facility
- Funds in an individual retirement account (IRA), whether you are an owner or beneficiary
- A beneficiary of a foreign trust where the trustee is reporting via FBAR
This is not an exhaustive list. If you are unsure whether you must file an FBAR depending on your tax liability, you should waste no time in contacting an experienced attorney. If you wish to know more about FBAR reporting, you should continue reading and consider contacting our Elk Grove FBAR attorneys as soon as possible.
How to File an FBAR in Elk Grove
The FBAR has yearly reporting requirements that must be filed on April 15 of the following calendar year reports. Fortunately, if a taxpayer misses the April 15, the IRS will provide the taxpayer with an automatic extension to file their FBAR on October 15 of the same year. However, it would be wise to stick to the original filing date as a later filing could affect your taxes in a variety of ways.
It is also important to note that there is an extension provided to taxpayers that are victims of a natural disaster. For example, if you were displaced due to a wildfire near your home, this may provide you with more time to file your FBAR.
To file your FBAR, you must utilize the filing system operated by the Financial Crimes Enforcement Network. If you have never filed an FBAR before, it may be wise to work with an experienced Sacramento tax attorney that will ensure that your foreign accounts are adequately reported.
When seeking legal assistance to file your FBAR, you should be sure to have thorough records of all your foreign accounts:
- The name of the owner of the foreign account
- The account numbers of all foreign accounts
- Names and addresses of all foreign institutions where funds are held
- The type of foreign account you have opened
- The maximum value of each account during the calendar year
Failing to file your FBAR when it was required could lead to some severe penalties. For example, a negligent foreign account reporting could result in a taxpayer receiving a maximum fine of nearly $87,000. In some cases, you could even be sent to prison for violating the FBAR reporting requirements.
The NewPoint Law Group, LLP is here to ensure that your FBAR reporting is accurate.
Work with Our Skilled Elk Grove FBAR Attorneys Today
If you require legal assistance to handle foreign account reporting, you should speak with an experienced Elk Grove FBAR attorney as soon as possible. The legal team at the NewPoint Law Group, LLP possess decades of combined legal experience handling a wide range of tax law issues, and we would be pleased to work with you. To schedule a confidential legal consultation to discuss your tax liability, contact the NewPoint Law Group, LLP at 800-358-0305. You may also contact the firm online.