Question to a california tax attorney: Should Taxpayers File an FBAR For the First Time Or Wait?

Wednesday, November 19, 2014
It’s no joke if a taxpayer misses a Report of Foreign Bank and Financial Accounts (FBAR) filing deadline since the IRS, the Justice Department and Treasury Department are seriously monitoring FBARs. U.S. taxpayers who live in a foreign country or those who serve in the U.S. military overseas must file an FBAR.  In addition, U.S. taxpayers must to disclose all their foreign income held in overseas bank accounts and trusts when they file their tax return. In general, the deadline to file an FBAR or Form 114 June 30 and they must be filed electronically.  We all know that if taxpayers don’t make the April 15 tax deadline, they can request a six month extension.  The bad news is that you cannot request an extension to file an FBAR past June 30.  This is no joke.  “So, if a taxpayer had any foreign accounts with over $10,000 at any time period over the year, then they should definitely file by the coveted due date or else they will get into trouble with the federal government”, says California tax attorney at the Strategic Tax Lawyer Firm.

The problem is that most taxpayers, they worry about their long term issues, how they will act on these issues and whether the information they receive is accurate in order for them to file an FBAR on time.  Taxpayers with a foreign bank account may be worried about filing their first time FBAR by the scheduled due date because they feel it could be a mistake.  The California tax lawyer explains that taxpayers need to have a definitive plan, as well as be organized about the reporting of foreign accounts and income.  They need to know which tax years count for the filing, will it include all the accounts or only one, are there statements that can back up what is being filed, etc.

So the question remains, should a taxpayer file a first time FBAR or should they wait it out? The California tax attorney say, “pure and simple, the answer is yes, they must report by the deadline in June, no questions asked as there are no deadlines”. So if taxpayers have more than $10,000 in their account must file an FBAR electronically by Monday, June 30 in addition to their tax return.  

Contact the Strategic Tax Lawyers who are California tax attorneys about your FBAR filing.  Call (800) 669-4775 for more information and for a free consultation with one of the California tax lawyers.