Offshore Bank Account Compliance Services
The crackdown on offshore bank accounts has been under a growing spotlight in recent years. There are frightening headlines of individuals being sent to prison with sentences for offshore tax evasion.
However, many U.S. taxpayers are simply unaware that the U.S. requires its residents and citizens to pay tax on a worldwide income and to file an annual form completely independent of their tax return, known as a Form 114, Report of Foreign Bank and Financial Accounts, also known as an FBAR. The Internal Revenue Service has established the Streamlined Filing Compliance Procedures, to give those who qualify an opportunity to come forward, file old tax returns, and by paying a pre-determined penalty, be free of criminal or additional civil penalties.
Our International Commerce Group not only understands the technical requirements of addressing the tax filings but we are intimately familiar with the stress of learning that past filings may have been missed. We understand that addressing this problem can be as much an emotional issue as a financial issue.
We have worked with many taxpayers to help them determine the best course of action to address these issues. In addition, our staff has a comprehensive understanding of related tax return issues such as:
- Repatriation Tax and GILTI system
- Passive Foreign Investment Company PFIC taxation rules.
- Treatment of foreign business operations.
- Claiming the foreign tax credits.
- Impact of amended federal filings on state tax.