Robert J. Fedor, Esq., L.L.C.

Addressing compliance issues related to offshore financial accounts

The Internal Revenue Service combats the circumvention of United States law by requiring U.S. citizens and residents with money in foreign accounts to report those accounts each year by completing the Report of Foreign Bank and Financial Accounts, or FBAR. Under the Bank Secrecy Act, foreign trusts, mutual funds, brokerage accounts and bank accounts, along with any dividends, interest, gains or losses associated with those accounts, must be reported.

There is nothing illegal about a U.S. citizen or resident simply having a foreign bank account. In recent years, however, the U.S. Department of Justice and the IRS have stepped up efforts to hold individuals, corporations and trusts civilly and criminally accountable for not disclosing foreign accounts.

Attorneys at Robert J. Fedor, Esq., LLC, work to help offshore account holders comply with the IRS. In addition, our attorneys make every effort to minimize any possible criminal exposure in connection with offshore funds. If amended federal income tax returns or FBARs need to be filed, then our attorneys also handle those matters in-house.

Under U.S. law, an FBAR is required if a U.S. citizen or resident has signing authority or a financial interest in a foreign account, and if the total value of the individual's offshore accounts came to more than $10,000 at any point during the year.

The stakes are high when the U.S. government suspects that someone has hidden taxable funds from the IRS, and foreign governments are increasingly cooperating with U.S. authorities in criminal investigations related to tax evasion. If you have compliance concerns about an offshore account, then it is important that you seek consultation from a U.S. tax law attorney as soon as possible.

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