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FBAR and FATCA compliance

Foreign Financial Asset Reporting Assistance in New York

Secure Compliance with FBAR and FATCA Requirements

Navigating the complexities of foreign financial asset reporting can be overwhelming for individuals and businesses alike. Whether you’re concerned about meeting Foreign Bank Account Report (FBAR) or Foreign Account Tax Compliance Act (FATCA) obligations, the law firm has the experience to guide you through the process with confidence and ease.

Understanding FBAR: Do You Need to File?

U.S. citizens, residents, and entities with a financial interest in or signature authority over foreign financial accounts exceeding $10,000 in aggregate at any point during the year must comply with FBAR requirements. Financial accounts may include:

  • Bank accounts
  • Brokerage accounts
  • Mutual funds
  • Other overseas financial holdings

Non-compliance with foreign financial asset reporting requirements, such as FBAR and FATCA, can lead to severe penalties. Failing to file or inaccurately reporting these accounts may result in fines starting at $10,000 for even non-willful violations. For willful violations, penalties can soar to the greater of $100,000 or 50% of the account balance per violation. Additionally, criminal charges, including imprisonment, may apply for intentional non-compliance. These repercussions highlight the importance of timely and accurate filings to avoid financial losses and legal complications.

Key Details:

  • Filing Deadline: April 15 (automatic extension to October 15).
  • Filing Method: Submit FinCEN Form 114 electronically via the BSA E-Filing System.
  • Penalties for Non-Compliance: Civil penalties of up to $10,000 for non-willful violations, with willful violations subject to higher fines and potential criminal charges.

FATCA Compliance: Thresholds and Reporting

If you own foreign financial assets exceeding certain thresholds, FATCA mandates filing Form 8938 with your annual IRS tax return. The thresholds vary based on your filing status:

  • Single taxpayers living in the U.S.: Assets above $50,000 at year-end or $75,000 at any time.
  • Married taxpayers filing jointly: Assets above $100,000 at year-end or $150,000 at any time.
  • For those living abroad: Higher thresholds apply.

Key Details:

  • Filing Deadline: Same as your federal tax return.
  • Penalties for Non-Compliance: Fines starting at $10,000, with potential additional penalties for continued non-compliance.

Key Differences Between FBAR and FATCA

Feature FBAR FATCA
Filing Agency FinCEN IRS
Filing Form FinCEN Form 114 Form 8938
Filing Threshold $10,000 aggregate accounts Varies by filing status
Filing Deadline April 15 (extension to Oct 15) Same as federal tax deadline

Protect Yourself: Why Timely Compliance Matters

Non-compliance with FBAR and FATCA can result in severe penalties, including fines, criminal charges, and reputational harm. An expert noted that proactive planning and accurate reporting can save you from these risks.


How the Law Firm Can Help

The law firm has experience assisting clients with foreign asset reporting, ensuring compliance with state and federal regulations. From evaluating your financial situation to preparing required forms, we provide comprehensive support tailored to your needs. Let us handle the legal complexities so you can focus on your goals.


Schedule Your Consultation Today

Don’t let the intricacies of foreign financial asset reporting overwhelm you. Contact the law firm now to schedule a consultation and secure the professional assistance you need to stay compliant and protect your financial future.

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