PRLog - March 27, 2015 - SOUTHGATE, Mich. -- With the deadline to file taxes just over three weeks away, it is important for taxpayers to properly complete tax returns to ensure they receive the maximum return and avoid being penalized, especially by failing to report the amount held in foreign bank accounts.
Anyone that has more than $10,000 in a bank account outside of the United States must report it to the IRS every year, or risk facing substantial penalties.
“It is vital that taxpayers remember to disclose their foreign bank accounts as well as their worldwide income on tax reports,” said Venar Ayar of Ayar Law Group. “Failing to do so could result in penalties. At Ayar Law Group, we help our clients understand these laws so they can avoid being penalized, but there are also ways we can help reduce the amount of penalties they acquire.”
Taxpayers are penalized 50% of their offshore account’s value for each year they fail to report it. Over a period of six years, this penalty can amount to 300% of the account balance, as taxpayers must keep in mind that these accounts earn interest.
One way the U.S. is cracking down on taxpayers who have foreign accounts is through the Foreign Account Tax Compliance Act. The FATCA’s objective is to report foreign financial assets. It is currently working to get foreign countries to sign up and disclose their account holders, which means foreign banks will give the names of people with accounts outside of the U.S. to the FATCA.
If taxpayers do face penalties for not reporting the money in their foreign accounts, they can pay a reduced penalty by qualifying for an amnesty program. The key to qualifying for this program, though, is that they must voluntarily disclose the account before being turned into the IRS by the bank.
While there are ways to reduce penalties for not disclosing foreign bank accounts, taxpayers can and should avoid being penalized by properly reporting these accounts when filing taxes.
About The Ayar Law Group
The Ayar Law Group specializes in helping individuals and businesses solve their tax problems. Our Michigan tax attorneys serve all of metro Detroit and the greater Southeastern Michigan area. Our narrowly-focused tax resolution practice gives us the specialized knowledge and experience we need to fully understand the nature of, and best possible solutions to, each and every individual and business tax problem. www.ayarlawgroup.com
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Michigan Tax Attorney Gives Tips for Taxpayers with Foreign Bank Accounts
March 27, 2015 at 13:18 PM EDT
