FBAR
FATCA
OVDP
Foreign Bank Accounting Reporting
Form TD F 90-22.1 is now obsolete
April 15 filing period, extensions are available
All forms are required to be filed electronically
through BSA system
Penalties for non-compliance
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Criminal penalties for willful violations – Up to 5 years imprisonment and $250,000 fine ;
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Civil penalties – Non-willful violation: Up to $10,000 for each violation – Willful violation: Greater of $100,000 or 50 percent of the balance in the account at the time of the violation.
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Both civil and criminal penalties can be imposed together
Options for non-disclosure
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Quiet Disclosure
Foreign Account Tax Compliance Act
FATCA requires foreign financial institutions (FFIs) to report to the IRS information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest.
U.S. taxpayers with specified foreign financial assets that exceed certain thresholds must report those assets to the IRS annually on an information return - Individual taxpayers must file Form 8938 beginning with their 2011 Form 1040s.
A specified foreign financial asset includes (1) financial accounts maintained by foreign financial institutions and (2) other foreign financial assets held for investment such as foreign stocks or securities, interests in a foreign entity, any financial instrument or contract that has as an issuer or counter party that is other than a U.S. person, foreign pensions and deferred compensation plans, and certain foreign trusts and estates
Unmarried taxpayers living in the U.S. - The total value of specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year.
Married taxpayers filing a joint income tax return and living in the U.S.: The total value of specified foreign financial assets is more than $100,000 on the last day of the tax year or more than $150,000 at any time during the tax year.
Married taxpayers filing separate income tax returns and living in the U.S.: The total value of specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year.
A taxpayer living abroad must file if: – You are filing a return other than a joint return and the total value of your specified foreign assets is more than $200,000 on the last day of the tax year or more than $300,000 at any time during the year; or – You are filing a joint return and the value of your specified foreign asset is more than $400,000 on the last day of the tax year or more than $600,000 at any time during the year.
Failure to file Form 8938 may result in a $10,000 civil penalty as well as an additional $10,000 continuation penalty for each 30 day period after the taxpayer is notified by the IRS of the failure to file (not to exceed $50,000), Criminal penalties may also apply,
Failure to file Form 8938 or certain assets on Form 8938 may keep the statute of limitations open for ALL items on a return until 3 years after Form 8938 is filed.