irss disclosure of overseas bank accounts

#Irss disclosure of overseas bank accounts full#
#Irss disclosure of overseas bank accounts professional#

Tony Torchia, CPA, is a partner at RotenbergMeril where he primarily engages in tax planning and multi-state compliance issues for closely-held entities, international companies and their owners. Additionally, taxpayers must complete a questionnaire identifying the taxpayer's financial interests in foreign financial accounts, including financial accounts outside their country of residence and other questions relating to their foreign interests and compliance. Low-risk taxpayers will be required to file delinquent tax returns (with appropriate related information returns) for the past three years and delinquent FBARs for the past six years, with payment for tax and interest, if necessary.

#Irss disclosure of overseas bank accounts full#

Submissions that present higher compliance risks are not eligible for the streamlined procedure and will be subject to a more thorough review and possibly full examination. The reviews will be expedited and it is expected that those classified as low compliance risk will not have penalties or other follow-up actions. The IRS will analyze submitted questionnaires and filed tax returns to determine the level of compliance risk.

#Irss disclosure of overseas bank accounts professional#

Taxpayers who believe they are low-risk account holders should consult a tax professional to determine if they are an appropriate candidate for the program.

The new procedures are for non-residents including, but not limited to, dual citizens who have not filed U.S. The streamlined procedure is designed for taxpayers who present a low compliance risk with a history of following proper tax procedures up until the point of current overseas banking issues. taxpayers, intended to encourage current non-residents and dual citizens to comply by filing delinquent returns. In response, the IRS created a Streamlined Filing Procedure for non-resident U.S. tax returns or disclose their foreign accounts. Those citizens claim they were simply unaware they were still required to file U.S. citizens living abroad and dual citizens who have complied with tax rules where they reside raised concern that they should not be subject to this level of scrutiny. customers, notify them of their tax obligations, and finally follow-up by closing the account.

Banks that do not wish to comply with the reporting requirement will identify U.S. The clock on compliance is ticking as foreign banks work hard to identify their account holders who are U.S. FFIs that choose not to enter into this agreement are subject to a 30 percent withholding tax on all U.S.

Under FATCA, a Foreign Financial Institution may agree to report information on U.S. It also includes criminal prosecution and third-party reporting under the Foreign Account Tax Compliance Act, enacted in 2010. This program is just a facet of a wider effort by the IRS to stop offshore tax evasion and ensure tax compliance.