Regardless of the underlying reasons for the establishment of the foreign account, most of FBAR voluntary disclosures made to date have a number of common characteristics:
- A failure to report income earned on the foreign accounts.
- A failure to disclose the existence of the foreign account on the individual’s U.S. tax return – there is a place to check a box answering the question whether the taxpayer has signature authority or a financial interest in a foreign account, and if so, to list the names of the countries where the account is held.
- A failure to file annual FBAR forms disclosing he existence of the foreign account.
- Potentially, a failure to file additional IRS forms regarding a taxpayer’s relationship to a foreign trust or foreign corporation, or the taxpayer’s receipt of funds from foreign sources, including gifts and bequests.
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Characteristics of FBAR voluntary disclosures was last modified: October 26th, 2016 by David Klasing