Delinquent FBAR Submission Procedures
Taxpayers who do not need to use either the OVDP or the Streamlined Filing Compliance Procedures to file delinquent or amended tax returns to report and pay additional tax, but: (1) have not filed a required Report of Foreign Bank and Financial Accounts (FBAR) (FinCEN Form 114, previously Form TD F 90-22.1); (2) are not under a civil examination or a criminal investigation by the IRS; and (3) have not already been contacted by the IRS about the delinquent FBARs; should file their delinquent FBARs according to the general FBAR instructions and include a statement explaining why they are being filed late. All FBARs are now required to be filed electronically.
The IRS will not impose a penalty for the failure to file the delinquent FBARs if you properly reported on your U.S. tax returns, and paid all tax on, the income from the foreign financial accounts reported on the delinquent FBARs and you have not previously been contacted regarding an income tax examination or a request for delinquent returns for the years for which the delinquent FBARs are submitted. FBARs will not be automatically subject to audit but may be selected for audit through the existing audit selection processes that are in place for any tax or information returns.
Daniel Rosefelt, Attorney & CPA and his team have significant experience in resolving international tax problems and can help you make the right decision about your undisclosed offshore accounts or unreported offshore income. Call Daniel Rosefelt & Associates, LLC, Attorney & CPA at 301.656.4424.