FBAR reporting requirements require that US Citizens or Residents report foreign accounts that have a cumulative balance of over $10,000.00.
To determine if you meet the $10,000.00 threshold take the highest balance for the year for every foreign account that you have and add the highest balances together. If it is more than $10,000.00 you need to report these accounts.
When is the FBAR due date: April 15, 2024.
Currently FBAR accounts are reported on your tax return. Most CPAs should be able to handle reporting foreign accounts for the current year and moving forward.
The civil penalties can be as high as 50% of the asset.
There are also criminal penalties that can include imprisonment.
There are currently only 2 options for dealing with unreported foreign accounts.
If you do not meet the non-willful standard the only other option is to amend your past tax returns, start reporting the foreign accounts moving forward, and pay any penalties or fees in full.
The IRS frowns on quiet disclosures and there is no protection from being investigated and/or prosecuted for non-disclosure.
There are exceptions to when someone must pay the 5% penalty or if a taxpayer needs to report foreign accounts.
If you have Foreign Accounts that have not been reported talk with a Tax Professional to discuss your rights and options.
The IRS is actively investigating and pursuing these cases and enforcing the very tough penalties that come with prosecution. The best known example of these prosecutions is Paul Manafort who was convicted for failing to report foreign income as well as other crimes.