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IRS Announces New Rules for FBAR Penalties

- By : Parag Patel

examination; FBAR issue workpapers; the FBAR 30-Day Letter (Letter 3709 for pre-assessment; Letter 3708 for post-assessment); the Taxpayer’s protest; the representatives FBAR/Title 31 Power of Attorney Form 2848, if applicable;…

New FinCEN Form 114 (FBAR) Filing Rules Announced

- By : Parag Patel

required to establish the profile of each FBAR filer. They were also used as the means to electronically sign the submitted FBARs. This required an FBAR filer to provide the…

Correcting Common FBAR Errors

- By : Parag Patel

Amended FBAR According to the FBAR instructions, a person who previously filed an FBAR but mistakenly provided incomplete or inaccurate information on the form is required to file an amended…

2016 US Dept of Justice (DOJ) Tax Division: FBAR penalty collection cases

- By : Parag Patel

…unusual FBAR penalty collection is required. Unlike a tax or penalty assessed in the Tax Code, which is subject to broad administrative collection remedies of liens and levies, the FBAR

New Court Case Limits the Reasonable cause exception to FBAR penalties

- By : Parag Patel

…program or file the missing FBAR forms. The IRS issued non-willful FBAR penalties against both Larry and Linda for four years, a total of $80,000.00.   Is a CPA’s Advice…

New FBAR Deadline applies to 2016 Tax Year Onwards

- By : Parag Patel

…take effect until the FBAR for the 2016 year is due in 2017. Hence, the 2015 FBAR is still due on June 30, 2016. However, the 2016 FBAR and subsequent…

New FBAR Court Case Makes it Easier for Taxpayers to be Deemed Willful

- By : Parag Patel

inflation) or 50% of the balance in the unreported financial account. A recent court case impacts the FBAR Burden of Proof. What is the FBAR Burden of Proof? When we…

OVDI: Requesting issuance of a FBAR warning letter instead of penalties

- By : Parag Patel

…In doing so we have been advocating for the IRS Agent to issue the FBAR warning letter instead of penalties. IRM 4.26.16.4 (07-01-2008) FBAR Penalties The IRS has been delegated…

New IRS Guidelines for Willful FBAR violations

- By : Parag Patel

Last week, the Internal Revenue Service released interim guidance (SBSE-04-0515-0025) on foreign bank account report (FBAR) penalties to improve the administration of the FBAR compliance program. The guidance contains amendments…

Opting-out of the Offshore Voluntary Disclosure Initiative: FBAR Penalty Mitigation Guidelines

- By : Parag Patel

…those who do not know about the Normal FBAR Penalty Mitigation, you should see http://www.irs.gov/irm/part4/irm_04-026-016.html#d0e1317. The Normal FBAR Penalty Mitigation are also provided below. Normal FBAR Penalty Mitigation Guidelines for…

Federal District Court Holds that FBAR Penalties in Excess of $100,000 is Unlawful

- By : Parag Patel

…penalties. The IRS assessed penalties for willful failure to timely file FBARs from 2007 to 2010. The individual had four separate FBAR violations in 2007, and the associated penalties totaled…

Beware: IRS Reminds Taxpayers of FBAR Deadline

- By : Parag Patel

FBAR requirement. The FBAR filing requirement is not part of filing a tax return. The FBAR Form 114 is filed separately and directly with FinCEN. FBAR filings have surged in…

New FBAR Deadlines and Penalty Relief available

- By : Parag Patel

was due to FinCEN by June 30, 2015. In addition, the June 30 deadline for FBARs for such years cannot normally be extended. New FBAR reporting guidelines and New due…

New FBAR FIling Deadline Law Signed

- By : Parag Patel

…15th, if this is the first time the FBAR was due. High penalties apply for failure to file FBARs. However, the IRS already has discretion to waive FBAR filing penalties….

New Much-Needed Guidance for Non-Willful FBAR violations

- By : Parag Patel

Last week, the Internal Revenue Service released interim guidance (SBSE-04-0515-0025) on foreign bank account report (FBAR) (also known as FinCen 114) penalties to improve the administration of the FBAR compliance…

Helpful Non-willful FBAR penalty case decided by court

- By : Parag Patel

…at some non-willful FBAR penalty litigation. The US district court has essentially dismissed a taxpayer’s challenges to his penalty for failing to file FBARs (Report of Foreign Bank and Financial…

FBAR Reforms Recommended

- By : Parag Patel

…filing of FBAR extensions through their products; FinCEN’s final regulations include a provision to grant an automatic extension until June 15 to FBAR filers located overseas or who maintain their…

Foreign bank account reports (FBARs) and the 2011 Offshore Voluntary Disclosure Initiative (2011 OVDI)

- By : Parag Patel

Foreign bank account reports (FBARs) for 2010 are due on June 30, 2011 (and no extension is available). Recent guidance provides insight into who is required to file an FBAR

US Court finds non-willful FBAR penalty not limited to $10,000 per year

- By : Parag Patel

…the penalty should not exceed $10,000 per FBAR, irrespective of the number of bank accounts required to have been listed on the FBAR. The court viewed Section 5321 as “somewhat…

How to Defend Against FBAR Penalties

- By : Parag Patel

…be income tax return audits seeking the unreported foreign income. These audits will likely identify the non-filing of Report of Foreign Bank and Financial Accounts, TD F 90.22-1 (FBAR) forms….

Some FBAR Deadlines Extended

- By : Parag Patel

Last week the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) again extended the deadline for certain financial professionals to file foreign bank accounting reporting forms known as FBARs. In FinCEN…

Top 4 Exceptions to FBAR Filing Requirement

- By : Parag Patel

FBARs are due this week (again). Below are the top 4 exceptions we often see for the FBAR filing requirement. Certain Accounts Jointly Owned by Spouses – the spouse of…

Argue for No Penalty and a Warning Letter for FBAR Violations

- By : Parag Patel

…account is inherited and how the taxpayer treated other inherited accounts. Under IRM 4.26.16.4 (FBAR Penalties) (07-01-2008) whenever there is an FBARviolation, the examiner will either issue the FBAR warning…

IRS delinquent FBAR submission procedure

- By : Parag Patel

should file the delinquent FBARs according to the FBAR instructions. Follow these steps to resolve delinquent FBARS Review the instructions Include a statement explaining why you are filing the FBARs…

New Online System for Filing Your Report of Foreign Bank and Financial Accounts (FBAR)

- By : Parag Patel

…file an FBAR if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year. The FBAR due date for the 2010 calendar year…

Delinquent FinCen Form 114 (FBAR) Filings

- By : admin

issue: IRS delinquent FBAR submission procedure: The IRS offers a new “delinquent FBAR submission procedure”, which is available if you properly reported on your U.S. tax returns, and paid all…

The Misunderstood Extension of time to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR)

- By : Parag Patel

now have until October 16 to submit their FBARs for 2016 without being subject to penalties. There is no specific FBAR extension document or form that is required to be…

FBAR Reporting Season is here

- By : Parag Patel

form). If you have been filing an FBAR form in prior years, please note that FinCEN Form 114 supersedes TD F 90-22.1 (the FBAR form that was used in prior…

Significant FBAR Penalties Upheld by Court

- By : Parag Patel

…maximum penalty for willful non-filing of an FBAR and must pay $700,000 for her ‘reckless disregard’ of her duty. The court opinion makes the FBAR willful penalty a strict liability…

Another foreign bank customer found guilty of foreign income under-reporting and FBAR violations.

- By : Parag Patel

…his foreign income and one count of failing to file a Report of Foreign Bank and Financial Accounts (FBAR). It appears that he was not convicted for most of the…