US tax accountant warns that the Treasury Department has announced new inflation-adjusted increases in the penalty amounts
North Vancouver, BC -- (ReleaseWire) -- 05/05/2018 -- As an tax accountant who specializes in cross-border taxation, Mark Schiffer recently published an article discussing FinCEN's (Financial Crimes Enforcement Network) decision to implement an inflation-adjusted increase in penalty amounts.
For more, go to: https://www.us-taxprofessionals.com/wordpress/
As the article explains, every US citizen with a financial interest in, signature, or other authority over any foreign financial accounts (including bank, securities, or other types of financial accounts in a foreign country) must file an FBAR (Report of Foreign Bank and Financial Accounts, i.e. FinCEN Form 114).
This is mandatory if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year. The civil and criminal penalties for noncompliance with FBAR filing requirements are significant.
Civil penalties for a non-willful violation can range up to $10,000 per violation (31 U.S.C. 5321(a)(5)(B)(i)), as adjusted for inflation, and civil penalties for a willful violation can range up to $100,000 (31 U.S.C. 5321(a)(5)(C)), as adjusted for inflation, or 50% of the amount in the account at the time of the violation, whichever is greater.
Today, the amounts of the maximum penalties assessed after 8/1/2016 but before 1/16/2017, will be $12,663 and $126,626 respectively. It should also be noted that a "reasonable cause" exception exists for non-willful violations, but not for willful ones.
There will also be a slight adjustment in the penalties assessed after 1/15/2017. In this case, the maximum penalty for a non-willful failure to report will increase to $12,921 while the fine for a willful failure jumps to $129,210.
It's important to understand IRS requirements to fully comply in international tax law. As a firm of specialized US Tax Accountants, Mark Schiffer and his team can assist with filing an FBAR or any other aspect of cross-border taxation. Learn more by calling 604-281-3318.
About US Tax Professionals
US Tax Professionals provide tax services for dual American and Canadian citizens in Vancouver. Founded in 2013, they specialize in taxation for US citizens and expats, taxation and accounting for business, cross-border taxation for US and Canadian citizens, as well as accounting and taxation of alternative investments, including private equity funds and hedge funds.
For more information, visit https://www.us-taxprofessionals.com/ or call 604-281-3318.
US Tax Professionals
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