Unreported foreign bank accounts are trouble in the 21st Century. After the adoption of FACTA ( the Fair and Accurate Credit Transactions Act) protocols worldwide, the reporting foreign bank accounts is no longer a choice, but an absolute necessity. In Orange County and all across Southern California, stories of successful men and women being caught by the IRS and prosecuted by the Justice Department are becoming commonplace.
Before such a nightmare happens to you over unreported foreign bank accounts, the international tax consultants at LSL CPAs wants to help clean up your foreign accounts and prepare them for FBAR filings and voluntary disclosure reporting to the IRS.
Danger of Unreported Foreign Bank Accounts
The danger of unreported foreign bank accounts is being demonstrated over and over again by dreadful tales reported on by local journalists. A perfect example was the story of a successful Laguna Beach doctor facing serious prison time and huge fines. In the Orange County Register, the following news story was recounted at the beginning of February.
After pleading guilty to hiding an offshore bank account, a Laguna Beach doctor is facing up to five years in prison. A successful obstetrician and gynecologist, Baruch Fogel clearly did not want to pay taxes. As a result, he diverted at least $8 million to an undeclared bank account in Luxembourg through the Israel-based Bank Leumi.
Guilty Of Willfully Concealing Unreported Foreign Accounts
According to a statement from the United States Department of Justice, Fogel pleaded guilty to willfully failing to report a foreign bank account for the 2009 tax year. Fogel’s arrest was part of a crackdown on Americans concealing accounts in Israeli banks. An Israeli-born U.S. Citizen, Fogel will be required to pay $4.2 million to the IRS.
Under FBAR regulations, U.S. citizens who have a foreign financial account a balance of $10,000 or more are required to disclose the account on their individual income tax returns. LSL CPAs believes that Fogel’s case is not an exception, but the new rule. Given the
International FATCA Cooperation Means More To Come
Given the international cooperation with FATCA, more and more unreported foreign bank accounts are sure to be revealed. If you have unreported foreign bank accounts, you need the support of an international tax consultant. Please contact the international tax team at LSL CPAs before it’s too late.
It is important to further note that this article presents only a partial view of the subject matter. It does not claim or attempt to be comprehensive or perfectly accurate. To learn more about FBAR reporting requirements in regards to foreign financial accounts, please call LSL CPAs international tax accountant Yana Weaver at 714.569.1000.
