IRS Offshore Voluntary Disclosure Program: How to avoid harsh FinCen 114 (FBAR) fines

If you own foreign assets, then you have certain US income tax filing rules that you must follow if the account balance in the account exceeds $10,000 (for instance the FinCen Form 114). The IRS filing requirement for foreign assets require that you disclose substantial foreign assets, and almost always include the income from the foreign asset in your US tax return. Once the account balance is over $10,000 USD, than you also need to review the rules and see if you need to file any other tax forms, such as the Form 8938 as part of your Form 1040 series tax return. These rules are complex, so there are many taxpayer’s that never knew about these tax filing requirements, since they were not informed by the banks that held the asset, or their accountants. For these people, the IRS has a program that is helpful since it allows you to get back into compliance, avoid the penalties for late filing, and pay the correct taxes owed. The program is generally known as the IRS…

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