Is it necessary to disclose foreign accounts?
Date: Wed, 02/23/2011 - 03:24
Is it necessary to disclose foreign accounts?
As far as I know, you have to mention it if your total savings a
As far as I know, you have to mention it if your total savings amount is more than $10,000.
But how would they ever find out? You have to volunteer that inf
But how would they ever find out? You have to volunteer that info.
"need to know basis" right? And maybe they don't "need to know".
You need to file an IRS Form TDF 90-22.1 if you have a total in
You need to file an IRS Form TDF 90-22.1 if you have a total in all accounts of 10K. So, if you have two accounts one with 4k and one with 6k you need to disclose both!
***If you do not disclose this information and the IRS is made aware of the accounts you will pay very high penalties. I believe they basically just take the money they're owed out of the accounts.
"The law governing form TD F 90-22.1 "provides for a nonwillful penalty of up to $10,000 per violation for violations occurring after October 22, 2004. This penalty will be waived, however, if the person can show reasonable cause for the violation and if the person provides a late-filed [Form TD F 90-22.1] with the information that should have been reported earlier. "IRS will consider the facts and circumstances of each case in determining whether penalties are appropriate. Persons who have not timely filed [Foreign Bank Account Reports] should attach a statement explaining why the [Form] was not timely filed."
In the time since I first sourced that hopeful-sounding quotation, the IRS has become increasingly austere in its enforcement of the foreign bank reporting requirements, and the IRS has started imposing very stiff penalties on taxpayers who have failed to file the FBAR and also failed to report their foreign-source income.
The IRS is currently conducting a voluntary disclosure initiative for people who need to file late foreign bank account reports and need to report previously undeclared foreign income. This [URL="http://www.irs.gov/newsroom/article/0,,id=235695,00.html?portlet=7"]Offshore Voluntary Disclosure Initiative[/URL] has a deadline of August 31, 2011. Persons who are considering this voluntary disclosure program should consult with a tax attorney before participating in this IRS program."
