Foreign Account Penalties Explained (FBAR, form 8938, form 3520/3520-A & 8621

Описание: Foreign account penalties explained (FBAR, form 8938, form 3520/3520-A & 8621

When it comes to reporting foreign bank and financial accounts on the FBAR and other international information return forms to the Internal Revenue Service (IRS) and Financial Crimes Enforcement Network (FinCEN), one of the key motivating factors for most taxpayers for getting into compliance is to avoid fines and penalties. Unlike other types of penalties that the IRS can issue, the penalties assessed for matters involving the failure to file international information reporting forms can be financially debilitating. For example, if a US person missed reporting a foreign gift they received from a foreign person (even a parent), they may be on the hook for a penalty valued at 25% of the gift – even when there is no unreported income and/or a related FBAR or FATCA issue.