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Maryland FBAR Lawyer:
Navigate Foreign Bank Account Reporting with Confidence
Tax Relief Counsel provides trustworthy legal guidance and representation to Maryland residents seeking to understand the complexities of FBAR compliance. Our experienced tax attorney, Ramy Shabana, understands the intricacies of FBAR regulations and can help you meet your reporting obligations accurately while avoiding potential penalties.
Tax Relief Counsel: Your Guide to FBAR Compliance
Many Maryland residents have financial interests abroad, whether it’s an international bank account, overseas investments, or funds held in a foreign trust.
These assets have reporting requirements under the Foreign Bank Account Report (FBAR) rules. The regulations are complex, and many taxpayers unknowingly fall out of compliance, putting their assets at risk.
You don’t file an FBAR with your regular taxes — it’s a separate report that must be submitted to the U.S. Treasury. Failing to comply, even accidentally, can lead to significant penalties.
Tax Relief Counsel is dedicated to guiding you through the intricacies of FBAR reporting. We’ll help determine whether you have filing requirements, gather the necessary documentation, and ensure that your FBAR is filed correctly and on time.
Don’t let uncertainty about FBAR reporting put your financial well-being in jeopardy. Contact Tax Relief Counsel today for a free consultation. We’re committed to protecting your assets and providing peace of mind.
Understanding FBAR in Maryland
The Foreign Bank Account Report is officially known as FinCEN Form 114. The Department of the Treasury makes this form mandatory to prevent tax evasion by U.S.-based individuals with financial interests abroad. This includes Maryland residents.
The FBAR filing requirement applies if you have a financial interest in, or signature authority over, foreign financial accounts — including bank accounts, securities accounts, or mutual funds — and the aggregate value of those accounts exceeds $10,000 at any time during the calendar year.
As noted, the FBAR is a separate filing requirement from your annual tax return. Even if you believe your foreign accounts are exempt or that you owe no taxes on foreign income, failing to file an accurate and timely FBAR could get you into trouble with tax authorities.
Who Must File an FBAR?
Here are some common scenarios where you might need to file an FBAR:
- You Have a Bank Account Outside the Country: This includes checking, savings, and investment accounts.
- You Have Signature Authority Over a Foreign Bank Account: Even if you aren’t the account holder, you’re required to file if you control the account or make transactions.
- You Own Foreign Mutual Funds or Other Securities: Investments held in foreign institutions can trigger the FBAR reporting requirement.
- You Have an Interest in a Foreign Trust: Beneficiaries or grantors of trusts with foreign assets often need to file FBARs.
Remember, the $10,000 reporting threshold applies to the aggregate value of all your foreign accounts. Even if no single account exceeds this amount, you’ll still need to file an FBAR if the combined balance does.
If you’re unsure whether you meet the FBAR filing requirements, it’s always best to err on the side of caution and consult a qualified tax professional.
Unsure About Your FBAR Obligations? We Can Help.
Don’t risk getting hit with penalties by trying to determine your FBAR obligations alone. Contact attorney Ramy Shabana for a personalized assessment of your situation.
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How the IRS Discovers Unreported Foreign Accounts
The IRS is becoming increasingly sophisticated in its ability to detect unreported foreign accounts. They receive information from various sources, including:
- Foreign Account Tax Compliance Act (FATCA): Over 110 countries and thousands of financial institutions share information about U.S. account holders with the IRS.
- Whistleblowers: Individuals who report tax evasion related to foreign accounts can receive financial rewards.
- International Agreements: The U.S. collaborates with other countries to exchange tax information for economic and criminal justice reasons.
The consequences of non-compliance can be severe. Contact Tax Relief Counsel to ensure that your foreign accounts are reported accurately and legally.
Penalties for FBAR Non-Compliance
The IRS takes FBAR violations seriously. The penalties can vary depending on whether the violation was willful or non-willful, but even unintentional errors can have significant financial consequences:
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Violation
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Penalty
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|---|---|
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Non-willful non-compliance
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Up to $16,117 per violation
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Willful non-compliance
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Up to $161,166 or 50% of the original balance per violation, whichever is greater
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It’s important to note that these penalties are subject to inflation. Maryland may also have additional state-level penalties for tax-related violations.
FBAR Amnesty Programs
If you missed the FBAR filing deadline or are behind on reporting foreign accounts, you’ll be pleased to learn that the IRS offers amnesty programs that can help you achieve compliance and potentially reduce the applicable penalties. They include:
- Streamlined Filing Compliance Procedures (SFCP): Intended for taxpayers who weren’t willful in their failure to report foreign financial accounts.
- Voluntary Disclosure Program (VDP): Allows taxpayers with undisclosed foreign accounts, assets, and income to voluntarily report this information to the IRS.
We’ll help you understand these options and choose the best course of action to resolve your tax situation.
Don't Wait to Address Your FBAR Concerns
If you have questions or concerns related to FBAR reporting, we encourage you to contact us as soon as possible. Early action is often the best way to mitigate potential penalties and achieve positive results.
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Concerned About FBAR?
Tax Relief Counsel provides clear, confidential guidance for Maryland residents.
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How Our Maryland FBAR Lawyer Can Help
Tax Relief Counsel is here to provide the legal knowledge and support you need to fulfill your FBAR reporting requirements. Here are some of the ways we can help:
- Legal Guidance: We’ll provide clear and concise explanations of FBAR regulations, helping you fully understand your reporting obligations.
- Filing Assistance: Our team can prepare and file accurate FBARs on your behalf, minimizing the risk of costly errors.
- Penalty Mitigation: If you’re facing penalties, we’ll develop a strong legal strategy, negotiate with the IRS, and work toward the most favorable resolution possible.
Should you be subject to an IRS audit related to your FBAR filing or foreign accounts, our team can also provide skilled legal representation throughout the process.
Why Choose
Tax Relief Counsel for FBAR Compliance?
Navigating the intricacies of FBAR regulations requires a legal team with experience, dedication, and a client-focused approach. At Tax Relief Counsel, we offer more than just legal services. We provide much-needed peace of mind, along with the following advantages:
Extensive Knowledge
We have a proven track record of successfully guiding clients through complex FBAR issues.
Personalized Legal Strategies
We’ll tailor our approach to your unique circumstances, ensuring the best possible outcome for your case.
Clear and Transparent Communication
We believe in keeping our clients informed every step of the way, with clear explanations and prompt responses.
Unwavering Commitment
We’ll advocate tirelessly on your behalf. Your financial well-being and peace of mind are our top priorities.
Frequently Asked Questions
What records do I need to file an FBAR report?
To accurately complete your FBAR, you’ll need detailed information about your foreign financial accounts, including:
- Account numbers
- Account types (checking, savings, investment, etc.)
- Names and addresses of the financial institutions where the accounts are held
- The highest balance in each account during the calendar year
It’s essential to maintain thorough records of your foreign accounts. If you’re unsure about the required documentation, we can help you gather and organize the necessary information.
What happens if my foreign bank account earns interest?
Generally, any interest earned on your foreign bank accounts is considered taxable income in the United States, even if it isn’t distributed to you. You must report this income on your annual tax return.
Tax Relief Counsel can assist in determining the correct tax treatment of your foreign income and help you avoid penalties for underreporting.
Do I still need to file an FBAR if I’m filing my taxes with an expatriate tax professional?
Yes. Even if you’re working with a tax professional specializing in expat taxes, the FBAR filing requirement remains separate from your federal tax return. You must file it directly with FinCEN by the annual deadline.
That said, working with both a tax preparer and an FBAR lawyer can ensure that your foreign financial matters are handled lawfully and effectively.
What are the common FBAR mistakes Maryland residents should avoid?
Here are the top three mistakes to watch out for:
- Failing to File an FBAR When Required: This is a common mistake for those who are unaware of the reporting threshold or believe their foreign accounts are exempt.
- Incorrectly Valuing Foreign Accounts: Fluctuating exchange rates can make it challenging to determine the accurate U.S. dollar value of foreign assets.
- Missing the Filing Deadline: FBARs have a different filing deadline than federal tax returns.
We can help you avoid these and other common mistakes and guarantee full compliance with FBAR regulations.
Don't Let FBAR Reporting Trip You Up:
Protect Your Assets in Maryland
FBAR regulations can be confusing, but the penalties for non-compliance are very real. Don’t wait for the IRS to contact you — take control of your financial future.
Contact Tax Relief Counsel today for a confidential consultation. We’ll help you understand your obligations, explore your options, and develop a personalized strategy for achieving FBAR compliance.