• Anderson Income
    Tax Service, LLC
  • A Subsidiary of KSGA, LLP
  • 17918 Pioneer Blvd., Suite 201
  • Artesia, CA 90701 USA
  • Call: (562) 809-4449
  • Fax: (562) 809-1299
  • Email:info@anderson-tax.com

FBAR and FATCA Filing Options

Much has been written about FBAR and FATCA for the past six years and yet, there is still a great deal of confusion about reporting foreign bank accounts. Like a deer caught in headlights, many are frozen with fears about potential FBAR penalties but lack a concrete and manageable plan to deal with this issue.

On June 18, 2014, IRS commissioner John Koskinen said, “…we have made important adjustments to provide opportunities for all U.S. taxpayers to come in, including those who are not willfully hiding assets.” These adjustments include two Streamlined Filing Compliance Procedures (SFCP) to eliminate or lower FBAR penalties.

Starting July 1, 2014, US taxpayers with undisclosed foreign bank accounts have four options:

  1. Offshore Voluntary Disclosure Program (OVDP)
  2. Streamlined Filing Compliance Procedures (SFCP)
  3. Delinquent FBAR Submission Procedures
  4. Delinquent International information return submission procedures

The IRS provides information on the options available. To access IRS information click this link.

As an additional service to clients, KSGA, LLP is also offering documents with expanded information on foreign bank account rules and requirements. These include:

FBAR and FATCA Filing Options: This document provides expanded information on the four options offered by the IRS to US taxpayers. To download the document in PDF format, click here.

International Inbound: This document looks at filing issues facing immigrants who came in the 1970s and 1980s and even the early 1990s. To access the document in PDF format, click here.

International Outbound: US residents or US citizens need to report worldwide income to the US government, even if they don't have to pay any US income tax. Not reporting can carry severe penalties. This document provides information on the options available. To download the document in PDF format, click here.

Streamlined Filing Compliance Procedures: This document discusses the streamlined filing compliance procedures available to foreigners who are permanent US residents or who have been present in the US for more than 183 days during the last three years and have more than $10,000 in foreign financial accounts (FFAs). To view the PDF document, click here.

Tax Residency Rules: The document examines tax residency rules and the potential tax impact of living in another state but having a business in California. To access the PDF document, click here.