If you have foreign accounts which together total more than $10,000.00, you must report those accounts to the Department of the Treasury. Failure to do so can have some very nasty consequences:

• A penalty of 50% of the account balance per year;
• Fines of up to $250,000;
• Imprisonment.

Foreign Bank Account Reporting (FBAR) is a hot-button issue with the IRS; several foreign banks, including Credit Suisse and UBS, have paid large fines to the U.S. Dozens of taxpayers have been fined thousands of dollars – including one who was hit with the 50% penalty for each of four years, resulting in a bigger balance due to the IRS than the account ever held.

If you even think you might have a foreign bank account reporting issue – you failed to report income from foreign accounts, or you failed to identify foreign accounts – contact us. We’ll walk you through your options, and help you figure out the best course of action.