Delinquent FBAR Submission Requirements
If you don’t need to use either the offshore voluntary disclosure program (OVDP) or the Streamlined Filing Compliance Procedures, you should file your delinquent FBARs only if you:
- have not filed a required Report of Foreign Bank and Financial Accounts (FBAR) (FinCEN Form 114, previously Form TD F 90-22.1)
- are not under a civil examination or a criminal investigation by the IRS
- have not already been contacted by the IRS about the delinquent FBARs
All FBARs are now required to be filed electronically.
The IRS will not impose a penalty for filing delinquent FBARs if you:
- properly reported on your U.S. tax returns
- paid all tax on the income from the foreign financial accounts reported on the delinquent FBARs
- 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 submittedFBARs 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.
If you’re not sure if you’ve submitted your delinquent FBARs correctly or think you may need legal counsel to better understand your foreign financial affairs, Daniel Rosefelt and his team have significant experience in resolving international tax problems. Make the right decision about your undisclosed offshore accounts or unreported offshore income — call Daniel Rosefelt & Associates, LLC, Attorney & CPA at at (301) 656-4424 or reach out by completing our ten-second consultation form.