The IRS is ending amnesty for your financial accounts overseas
- Since 2009, more than 56,000 taxpayers have voluntarily disclosed their foreign accounts, paying $11.1 billion in back taxes, interest and penalties.
- Willful failure to file a Report of Foreign Bank and Financial Accounts, or FBAR, could result in a penalty of $100,000 or 50 percent of your balance in the foreign account, whichever is greater.
If you’re holding a bank account or an investment account overseas, you’re running out of time to come clean to the IRS.
The Internal Revenue Service will shut down its voluntary disclosure program on Sept. 28, meaning those who have failed to participate could be subject to large fines, penalties and criminal prosecution.
Since the program’s launch in 2009, more than 56,000 taxpayershave stepped up to report their foreign financial assets. In all, they paid $11.1 billion in back taxes, interest and penalties since then, according to the IRS.
“The offshore voluntary disclosure program is coming to an end,” said Katelynn Minott, a CPA with Bright!Tax. “There are a number of different ways to get compliant.”
Here’s what you need to know.
Accounts overseas
Though there are legitimate reasons to hold accounts overseas, Americans with these assets must report them to the IRS and Treasury.
Frustration over those requirements — and the related cost of remaining in compliance — has led some citizens abroad to renounce their citizenship.
Read more here: https://cnb.cx/2OCZ4jk
Shared from: CNBC