Welcome to another informative episode of Tax Blueprints, hosted by Daniel Rohr, a seasoned CPA and financial planning expert at Rohr and Associates, a leading CPA firm in California. In today’s episode, we explore the ins and outs of Foreign Bank and Financial Accounts Reports (FBARs)—a crucial yet often overlooked requirement for U.S. taxpayers with international financial interests.
Whether you are a U.S. citizen living abroad, a resident alien, or a U.S. resident with foreign assets, understanding FBAR requirements is crucial to avoiding hefty penalties. We dive into the specifics of who is required to file an FBAR and the implications of not doing so. Daniel provides concrete examples to elucidate the nuances of aggregate account values and their bearing on your FBAR obligations.
The episode also discusses the eye-opening case of United States v. Williams, which serves as a warning to those thinking that non-disclosure might go unnoticed. Daniel elaborates on how ‘willfulness’ is determined in the eyes of the law and why ignorance is not a valid defense.
For those in the precarious position of having neglected their FBAR obligations, we examine the Voluntary Disclosure Program—a possible path to mitigate criminal and financial risks. Daniel outlines the steps to take, the penalties involved, and the benefits of coming into compliance before it’s too late.
Additionally, the episode offers invaluable insights into the reporting of Specified Foreign Assets, detailing what these are and how to report them.
Disclaimer: The content provided in this episode of Tax Blueprints is intended for informational purposes only and does not constitute legal, tax, or financial advice. Before making any decisions regarding the topics discussed, you should consult with a qualified professional to ensure that individual circumstances and needs are taken into account.