Lack of tax knowledge majority of the taxpayers who are from foreign countries are not disclosing their foreign earned and unearned income on US tax returns, non-reporting of FBAR with FinCEN will attract penalties between $12,459 to $1,24,588 with criminal proceedings. FBAR (Foreign Bank Account Reporting) should be reported on FinCEN 114 with FinCEN (Financial Crimes Enforcement Network).
Lack of proficiency and proper FBAR knowledge most of the tax consultants are not guiding the tax payers to file FBAR, and it is leading the tax payers to pay hefty penalties to IRS and FinCEN. The tax consultants who have just an idea about FBAR are not able to help the tax payers to report FBAR with FinCEN since the tax consultants would expect fees to report FBAR.
Since IRS has increased the standard deduction of all the filing statuses and restricted unreimbursed employee business expenses for tax year 2021, So this restriction has made IRS more vigilant to initiate stringent process to penalize the tax payers with hefty penalties. We have been dealing with the penalty cases of FBAR and IRS since a long time and we are proud to say that in many cases we could able to convince the tax departments to waive or reduce the penalties.
Any taxpayer who is filing Form 1040 & 1040SR and having a signature authority of a foreign financial account need to disclose all types of foreign income on US tax returns, if you have any one or multiple below mentioned foreign financial accounts exceeding $10,000 need to file FBAR with FinCEN.
Commodity futures or options accounts
Insurance policies of whole life insurance policy with a cash value
Bank Accounts: Savings, checking and time deposits
Security Accounts: Brokerage accounts, securities, derivatives or any other financial accounts
Any financial account maintained with the foreign financial institution abroad
Along with the FBAR reporting with FinCEN, we will be more than happy to help taxpayers/clients with various value added tax services worth $1200 for free, for present and previously filed tax returns anytime throughout the year.