The IRS continues its pursuit of “US Citizens” who own a foreign bank account, foreign real estate, interests in a foreign company, and other assets such as brokerage accounts with credit card access. They are looking for US Citizens with foreign based assets who fail to report the existence of those assets.
US Citizens are required to report their worldwide income, but also report their assets such as real estate or business interests on informational returns.
In 2019, tax agencies around the world shared information on 84 million accounts holding foreigners’ assets; this to fight tax avoidance and evasion in their countries. This inquisition was double the efforts made in 2018. Clearly, the IRS and the Dept of Justice are not slowing their hunt for tax evaders. Unfortunately, the process used by the IRS and DOJ drags in many unknowing US Citizens who report annually but do not realize that they must also report the offshore assets and taxable income to the IRS; this despite filing and reporting the income in their foreign country.
If you have a foreign account and have not filed the FINCEN 114 (aka FBAR), you need to visit with a tax attorney at once. The limitations period to assess tax does not expire on unfiled tax returns. So act now!
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