Final FBAR Regulations: Navigating the Complex Requirements of Reporting Foreign Bank Accounts
Author: Gregory J. Bertsch, C.P.A, J.D..; Benjamin C. Hughes, J.D..
Source: Volume 25, Number 02, November/December 2011 , pp.23-32(10)
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Abstract:
The Bank Secrecy Act of 1970 requires US taxpayers to report certain interests in foreign bank accounts (FBARs). This reporting obligation has become a central focus in the U.S government’s well-publicized effort to curtail money laundering and tax evasion using foreign institutions. Over the years, the FBAR reporting obligation has created much confusion among taxpayers and tax practitioners alike. On February 2011, Final Regulations were issued to help resolve and explain some of the ambiguity. This article discusses the FBAR reporting requirement and highlights recent changes. It also reviews the penalties for non-compliance, the burden of proof, and the applicability of the statute of limitations to FBAR reporting.Keywords: Foreign Bank Account Reporting; 31 CFR Part 1010; foreign/international compliance; U.S. person; IRS enforcement; penalties; record keeping
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