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International FBAR Lawyer

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    International FBAR Lawyer in California: Page Contents at a Glance

    When American taxpayers hold overseas accounts or income generating assets that exceed certain limits, they are obligated to report these items to the IRS. These requirements fall under FBAR laws, or Report of Foreign Bank and Financial Accounts. Fully understanding these laws may require the knowledge of an FBAR Lawyer.

    Although the FBAR laws have existed for decades, the IRS, with the backing of the DOJ and Congress, has recently strengthened its efforts to identify those who have not disclosed foreign holdings. The FBAR rules become more punitive if the IRS determines that the taxpayer appeared to know (or should have known) about FBAR filing requirements and willfully failed to disclose the information.

    Rather than lose sleep over this confusing situation, turn to an FBAR Tax Lawyer to help you understand what you are facing and the best way to defend yourself.Even highly experienced individuals may find it difficult to understand the international rules related to FBAR laws. An FBAR Lawyer has the knowledge you need, either as a business owner or an individual taxpayer. If you are facing an FBAR-related situation with the IRS, contact the Tax Law Offices of David W. Klasing to schedule a 10-minute call with an experienced FBAR tax attorney. We know exactly how this law works, and we are ready to stand by your side throughout this process.

    Los Angeles is an international city with multiple airports, one of the largest shipping ports in the nation, universities that attract some of the world’s best and brightest,  and a diverse population from all parts of the world.In light of the significant social, cultural, and financial ties to foreign nations and overseas markets, those who live and work in greater L.A. have a higher than average likelihood of holding overseas accounts or assets and requiring the need for an experienced international FBAR lawyer. Individuals holding funds or assets that exceed certain limits are required to disclose the existence of the account or accounts or face serious tax consequences.

    International FBAR LawyerFBAR Requires Disclosure of Foreign Accounts

    Obligations regarding Report of Foreign Bank and Financial Accounts, or FBAR, has been present in the laws of the United States for many years. However it is only in relatively recent years that Congress, the IRS, and the DOJ have placed an emphasis on the identification and enforcement of offshore tax evasion. To address the perceived problem of wealthy Americans use of foreign accounts and trusts to avoid tax, Congress not only strengthened the penalties one could face for a willful FBAR violation, but also created new violation that can punish even inadvertent failures to comply with the disclosure law.

    Understanding Penalties for Willful FBAR Omissions

    In general, U.S. taxpayers are required to submit their FBAR filing by June 30th of each calendar year if they hold or control foreign accounts where the aggregate balance exceeds $10,000. The taxpayer must make a comprehensive and accurate disclosure or he or she can face serious tax charges. The penalty for accidental non-compliance with FBAR can be punished by a fine of up to $10,000. That $10,000 fine can be imposed for each violation meaning that a $10,000 fine can be imposed for each year where the account went unreported. IN situations where willfulness is not implicated, the IRS can typically look back for up to three years.

    However, if your actions are interpreted as being willful, then penalties become even more severe. A willful act can include someone who knows that they have a duty to file FBAR, but voluntarily decides to neglect this duty. Furthermore, a taxpayer who is willfully blind and intentionally avoids learning about a legal obligation or duty has also acted willfully. In short, willfulness involves a voluntary or intentional disregard of a known legal duty. Individuals convicted of a willful failure to fulfill their FBAR obligation face even more harsh penalties. A fine of $100,000 or 50 percent of the original balance – whichever is greater – can be imposed. Furthermore, like the non-willful version, each violation can be punished but for matters involving willfulness the IRS can look back six years. Willful FBAR penalties regularly exceed the value of the account in question.

    Taxpayers May Also Have a FATCA Disclosure Duty

    FATCA not only requires U.S. taxpayers to disclose foreign assets and accounts, it also requires foreign banks and financial institutions to provide information about U.S. linked accounts to the United States government. The U.S. government uses this information to identify taxpayers who have failed to comply with their disclosure obligations.

    Under FATCA, taxpayers are required to disclose foreign assets and accounts. Some taxpayers may be required to only make FBAR disclosures while others may be required to disclosure under both reporting regimes. While both FBAR and FATCA require the disclosure of foreign accounts, FATCA includes a broader array of assets in its reporting requirements. Furthermore, while the FBAR reporting threshold is constant, the FATCA filing obligation threshold is dependent upon one’s tax filing status and whether one is living within the borders of the United States or abroad.  Generally speaking sole filers and individuals living within the United States have a lower reporting threshold. Married taxpayers who file jointly and taxpayers who live outside of the U.S. can hold greater amounts of foreign assets before being required to disclose under FATCA.

    OVDP can Mitigate Your Exposure to Tax Consequences

    While the penalties that a non-compliant taxpayer can face are severe, the Offshore Voluntary Disclosure Program can mitigate the consequences you face provided that you make a comprehensive disclosure of all past compliance failures. While there is an offshore penalty, paying this penalty is undoubtedly preferable to facing the much more severe potential consequences of a tax enforcement action. To schedule a reduced-rate consultation call an experienced international FBAR lawyer at the Tax Law Offices of David W. Klasing at 800-681-1295 or contact us online today.

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    Representing Clients from U.S. and International Locations Regarding Federal and California Tax Issues

    Main Office

    Orange County
    2601 Main St. Penthouse Suite
    Irvine, CA 92614
    (949) 681-3502

    Our headquarters is located in Irvine, CA. Our beautiful 19,700 office space is staffed full-time and always available for our clients to meet with our highly qualified and experienced staff of Attorneys, Certified Public Accountants and Enrolled Agents. We also offer virtual consultations and can travel to meet with clients in one of our satellite offices.

    Outside of our 4 hour initial consultation option, we do not charge travel time or travel expenses when traveling to one of our Satellite offices, or surrounding business districts, where it is necessary to meet personally with taxing authority personnel, make court appearances, or any in person meeting deemed necessary for the effective representation of a client. To make this as flexible, efficient, and convenient as possible, David W. Klasing is an Instrument Rated Private Pilot and Utilizes the Firms Cirrus SR22 to service client’s in California and in the Southwest by air. Offices outside these areas are serviced via commercial jet airlines. None of these costs are charged to our clients.

    Satellite Offices

    (310) 492-5583
    (760) 338-7035
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    (661) 432-1480
    (818) 935-6098
    (805) 200-4053
    (510) 764-1020
    (408) 643-0573
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    (505) 206-5308
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    (332) 224-8515
    (512) 828-6646
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    (202) 918-9329
    (702) 997-6465
    (786) 999-8406
    (385) 501-5934