Los Angeles Income Tax Attorney Bruce Givner Reminds Taxpayers of Upcoming FBAR Filing Requirements

by Bruce Givner on July 2, 2012

Individuals who have a financial interest in, or signature or other control over, one or more financial accounts in foreign countries are required to file Form TD 90-22, Report of Foreign Bank and Financial Accounts (FBAR) if the aggregate value of the accounts was more than $10 thousand at any time during the 2011 or a prior calendar year.  Though the FBAR electronic filing rule from the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) was extended to June 30, 2013, individuals must file a paper FBAR by this June 30, 2012.  Furthermore, though income tax returns postmarked by the filing deadline are considered timely, the FBAR form must have been received by the IRS by June 30, 2012.

Individuals who have certain foreign financial assets with an aggregate value over $50 thousand ($100 thousand if filing married filing jointly) were required to attach new IRS Form 8938 - Statement of Specified Foreign Financial Assets to his or her individual income tax return.

Individuals who are required to file the FBAR form but fail to do so may be assessed a $10 thousand penalty.  If the failure to file is willful, the penalty can be up to $100,000 or 50% of the foreign financial account balances.  Criminal penalties may also be applied.

Individuals who do not file IRS Form 8938 may be assessed a $10 thousand penalty plus $10 thousand for each 30-days of non-filing after the IRS issues a notice of failure to disclose, for a maximum potential penalty of $60,000.

Givner & Kaye focuses on income tax planning and tax litigation in Beverly Hills, Calabasas, West Los Angeles, Hollywood, and other areas of Los Angeles County.  On the first and third Thursday of every month, Givner & Kaye hosts its MCLE & CE accredited series - "Thursday Insights."   If you have questions regarding passive losses, call Los Angeles Tax Attorneys Givner & Kaye at (310) 207-8008 today.

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