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Oakland FinCEN Form 114 Attorney + CPA
At the Tax Law Office of David W. Klasing, we are Oakland tax attorneys, CPAs and CPA candidates with a focus on international tax issues related to FinCEN Form 114, otherwise known as the “FBAR” (Foreign Bank Account Report). Our trusted, award-winning tax lawyers and CPAs have decades of experience helping U.S. citizens, residents, trusts, estates, and business entities navigate foreign income and information reporting and disclosure requirements successfully, making FinCEN Form 114, other foreign information and entity reporting and international tax compliance smoother and simpler for the taxpayers we serve. Whether you have questions about your FinCEN Form 114 responsibilities this tax season, or you need assistance reporting offshore assets, business entities, trusts, estates and offshore income that have not been disclosed/reported previously, we are here to limit your tax liabilities, reduce IRS civil penalties, and protect your best interests throughout the process. We are especially experienced and successful at dealing with scenarios where the government could easily infer that either willful income tax evasion or willful foreign information noncompliance occurred. We also have extensive experience and success with the delinquent information filing procedures and with both domestic and expat streamlined offshore voluntary disclosures.
What is FinCEN Form 114?
FinCEN refers to the Financial Crimes Enforcement Network, which, like the IRS, is a bureau within the U.S. Department of the Treasury. While the IRS’ role is to administer and enforce federal tax regulations, FinCEN focuses on national security by fighting money laundering and other financial (“white collar”) crimes.
FinCEN Form 114 is an electronic tax form which must be submitted online using the BSA E-Filing System. The acronym “BSA” refers to the Bank Secrecy Act, which is the federal law that creates the requirement for certain taxpayers to file FinCEN Form 114. The Bank Secrecy Act was passed by Congress in 1970.
FinCEN Form 114 vs. FBAR
FinCEN Form 114 is also known as the FBAR, or Foreign Bank Account Report. The IRS sometimes refers to this as the “Report of Foreign Bank and Financial Accounts.” FinCEN Form 114, or the FBAR, was previously known as Form TD F 90-22.1. However, this version of the form is obsolete, and the term is no longer in use.
When is FinCEN Form 114 Due?
It is important for taxpayers to be aware that the old FBAR due date of June 30 no longer applies. In 2015, a broad transportation law created a new FinCEN Form 114 due date, moving the deadline earlier in the year to April 15, the same date federal income tax returns are typically due. The taxpayer may obtain an FBAR filing extension of up to six months, bringing the latest possible FBAR filing date to October 15 in most tax years. Federal holidays may disrupt these dates by several days, depending on the year.
Who Must File FinCEN Form 114 (FBAR)?
You may be required to file FinCEN Form 114 if the following criteria apply to you:
- You are a “U.S. person” by IRS definition. This means you are either a U.S. citizen (including dual citizens), or a U.S. resident (such as a green card holder). Entities and organizations, including certain trusts, businesses, and estates, can also be “U.S. persons” for tax purposes.
- You had signature authority over, or an interest in, a foreign bank account. This includes checking accounts, savings accounts, business accounts, and potentially even Bitcoin wallets located outside the United States.
- The value of such account – or, if there were multiple accounts, their total combined value – was $10,000 or higher during the tax year.
If the account value was $50,000 or higher, it may be necessary to file Form 8938 (Statement of Specified Foreign Financial Assets) under the FBAR-related Foreign Account Tax Compliance Act (FATCA), which our Oakland FATCA tax attorneys can also provide assistance with.
FinCEN Form 114 Penalties
Despite facing budgetary limitations, the IRS continues to develop increasingly rapid and accurate methods for detecting tax evasion when it occurs overseas, partnering effectively with governments, banks, law enforcement agencies and taxing authorities throughout the U.S. and around the globe. In fact, offshore tax evasion has become one of the IRS’ highest enforcement priorities during the past decade, with no signs of this trend reversing in the near future. This means the IRS is constantly on “red alert” for potential instances of FinCEN Form 114 violations and related income tax evasion and foreign information noncompliance, whether negligent or willful in nature. In either case, the taxpayer is subject to heavy fines, in addition to possible prison time for deliberate violations.
Accidental or negligent violations ordinarily will not result in jail time, but may nonetheless trigger costly FBAR penalties, which can be as great as $10,000 per individual violation. Willful failures to file FinCEN Form 114 are more serious and thus carry harsher consequences. To begin with, the maximum fine for a willful violation is 10 times higher at $100,000. Alternately, the taxpayer may be fined up to 50% of the balance of the unreported account(s) – whichever figure is larger. In addition to a substantially increased financial penalty, there is also a serious risk of criminal prosecution, potentially resulting in prison time.
International FinCEN Form 114 Attorneys and CPAs in Oakland, CA
Failure to file FinCEN Form 114 is likely to result in the imposition of debilitating financial penalties, with some taxpayers even risking prosecution in federal court. The Tax Law Office of David W. Klasing can help you make a voluntary disclosure, file a delinquent FBAR, or take other actions needed to reenter compliance – while protecting you to the greatest extent possible. We have extensive experience with both domestic and expat streamlined voluntary disclosures and delinquent information filing procedures.
Don’t allow avoidable or correctable tax errors to cost you more than they need to. Instead, work with a knowledgeable FinCEN Form 114 lawyer or CPA who has dedicated their career to resolving complex international tax matters. To discuss your tax needs confidentially in a reduced-rate consultation, contact our Oakland FBAR attorneys online, call our Oakland tax office at (510) 764-1020, or call our main office at (800) 681-1295. Please note that in-person meetings at our Oakland location must be scheduled in advance.
Note: If you have concerns about the privacy of our initial or subsequent communication and are unable to easily travel to our Irvine / Orange County Main Office, consider scheduling a GoToMeeting to safely and securely establish an initial or maintain an existing attorney client relationship. With end-to-end encryption, strong passwords and top-rated reliability, no one is messing with your meeting. To schedule a reduced rate initial consultation via GoToMeeting follow this link. Call our office and request a GoToMeeting if you are an existing client. We are generally happy to travel to any of our appointment only satellite offices for a subsequent meeting in appropriate circumstances once a relationship is established via a signed engagement letter and the payment of an initial retainer or where enough retainer is available where a current client to cover the reasonable travel time and time required for the meeting.
Will it cost me more to hire the Tax Law Offices of David W. Klasing, who’s main office and the vast majority of the firm’s staff is located in Irvine California, but an appointment only Satellite office is close to my location, as opposed to a local company? Absolutely not! See our policies that address this issue here:
