A taxpayer's obligations to file FATCA and FBAR
forms are distinct from each other and may require the same taxpayer to file both Form 8938 under FATCA and TD F 90-22.
penalty cases are emerging for account holders who, willingly or unwillingly, have been subjected to IRS examinations for unreported foreign bank accounts.
At the same time, the agency advised anyone with a foreign bank or financial account that a new deadline now applies to reports for these accounts, often referred to as FBARs
The authority to enforce the FBAR
requirements and to assess and collect civil penalties is delegated to the Commissioner of Internal Revenue by 31 CFR section 1010.
New disclosure requirements were put in place in addition to the existing FBAR
And though most people are unaware that FBAR
and FATCA even exist, millions of U.
The IRS notes that FBAR
filings have "risen dramatically" in recent years as FATCA phases in and other international compliance efforts have raised awareness among taxpayers with offshore assets.
Companies have been uncertain about which employees should file FBAR
3) the taxpayer had not declared all of his or her income in his or her country of residence; 4) the taxpayer was under audit or investigation by the IRS; 5) FBAR
penalties had been previously assessed against the taxpayer or if the taxpayer had previously received an FBAR
warning letter; 6) the taxpayer had a financial interest or authority over a financial account(s) located outside his or her country of residence; 7) the taxpayer had a financial interest in an entity or entities located outside his or her country of residence; 8) there was U.
reporting problems are at the tip of an iceberg involving other types of foreign activity.
is required because foreign financial institutions may not be subject to the same reporting requirements as domestic financial institutions.