Thursday, May 16, 2013
Questions for the Tax Lawyer: What is an FBAR and How do they find me?
FBAR is an acronym for Federal Bank Account Report i.e. TD F 90-22.1. This form is to be filed every year by June 30. There are no extensions. This is an information form. In 2008/2009 the IRS started prosecuting people for not filing FBARs. Criminal Tax has put a lot of effort and resources into “catching” people who are required to file FBARs and don’t. The IRS has a program they are calling Offshore Voluntary Disclosure Initiative (OVDI), this will allow taxpayers to self-report their Foreign Bank Account to the IRS. The IRS gets individual’s names from foreign banks by sending out a Jane Doe summons. The bank then sends the IRS information they have requested.