L.A. Tax Attorney Reminds Foreign Bank Account Owners of October 16 FBAR Filing Deadline
LOS ANGELES, Oct. 9, 2017 /PRNewswire/ -- Los Angeles tax attorney Dennis Brager of the Brager Tax Law Group has issued a reminder to owners of foreign financial accounts that Monday, October 16, 2017, is the extended deadline for filing a Foreign Bank Account Report (FBAR).
U.S. citizens or green card holders, as well as those who are present in the U.S. for more than 183 days during the year, with a financial interest in or signature authority over foreign financial accounts with combined balances of $10,000 or more at any time during the year are required to electronically file an FBAR. This includes persons who have controlling interests in U.S. entities which have foreign financial accounts, as well as certain trust beneficiaries and trust grantors.
"Time is running out to meet the extended FBAR filing deadline of October 16th for the 2016 tax year," noted Brager, a California State Bar certified tax specialist and former senior trial attorney for the IRS' Office of Chief Counsel. "The penalties for failure to file are severe and we urge anyone who has an ownership interest in a foreign financial account, and not reported it in the past to consult with a tax attorney experienced in these matters to determine their exposure, and remedial steps that may be taken."
Penalties for failing to file an FBAR can be criminal, civil or both. The criminal penalties may include:
- Fines of up to $250,000 or 5 years in jail (or both) for willfully failing to file;
- Fines of up to $500,000 or 10 years in jail (or both) for willfully failing to file while violating another U.S. law or as part of a pattern of illegal behavior.
Civil penalties for failing to file an FBAR include:
- A fine of $12,459 per violation for non-willful violations;
- A fine of the greater of $124,588 or 50% of the account balance at the time of the violation for each willful violation.
The IRS may assess an FBAR penalty at any time during a six-year period from the due date of the FBAR, and may also assess a separate penalty for each unreported account for each tax year in which an FBAR was not filed. Therefore, penalties can reach multiples of the balance in the account.
Brager emphasized that, "It's always better to get to the IRS before they come to you; and they are coming."
The Brager Tax Law Group resolves federal and state tax problems for individuals, businesses and estates. The firm handles all types of tax litigation and tax controversy matters, including disclosures of previously unreported foreign accounts, criminal tax defense, tax fraud, tax evasion, tax audits, tax appeals, tax preparer penalties, and more. For further information, visit BragerTaxLaw.com.
Contact:
Zarina Leviste
310-208-6200
[email protected]
SOURCE Brager Tax Law Group
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