I wanted to address a matter with serious financial and legal consequences – UNREPORTED FOREIGN INCOME.
Let’s say you haven’t reported over $150,000 worth of foreign income annually for the last eight years, along with three related bank accounts. In this email, we will discuss your concerns and outline your options for rectifying this situation.
👉🏻 Can the IRS and FinCEN Find Out?
Yes, they can. The Internal Revenue Service (IRS) and the Financial Crimes Enforcement Network (FinCEN) have robust mechanisms to detect unreported foreign income. They utilize tools like the Foreign Account Tax Compliance Act (FATCA) and Report of Foreign Bank and Financial Accounts (FBAR) to track undisclosed foreign assets and income.
👉🏻 Understanding FinCEN & FBAR Risks:
FBAR Non-Compliance: FBAR violations can result in penalties of up to $10,000 per violation or 50% of the account balance, whichever is greater.
Criminal Charges: In cases of willful violations, the penalties can be much more severe, including fines of up to $500,000 and up to five years in prison.
Global Reach: With international cooperation and the sharing of financial information, evading FinCEN’s scrutiny is becoming increasingly challenging.
HOW TO AVOID IT?
Plot a New Course with Amended Tax Returns: You can correct the omissions by filing amended tax returns to report your previously unreported foreign income. This is a proactive step towards compliance.
Embark on the IRS’s Streamlined Filing Compliance Journey: If you find yourself caught in the storm of non-compliance, the IRS offers the Streamlined Filing Compliance procedures, which provide a more lenient path to rectify past errors.
The seas of foreign income, FinCEN, and FBAR compliance can be perilous, but you don’t have to navigate them alone.
We specialize in helping individuals navigate the complex waters of FinCEN and FBAR compliance. Our experienced team can guide you through the process, ensuring you meet all reporting requirements without unnecessary complications.
Schedule your assessment today by clicking here , replying to this email, or calling us at (850) 829-3733.