Many Americans have foreign bank accounts that they will hold their money in. Other countries will offer some attractive interest rates and other benefits that make these a great option for Americans who want to make more money from their investment. But if you have a foreign bank account, you are required to report this information to the IRS at the end of the tax year. Failure to do so could get you in a lot of trouble with the IRS and you could pay a ton in fees and penalties when they find out.
If you have a foreign bank account, make sure that you are getting the right professionals to help you out with the IRS. The professionals at Tax Problem Resolutions will be able to help you file your foreign bank account so you can avoid issues in the future. If you already have a bank account that should have been claimed in the past, make sure to work with our professionals to get this taken care of right away.
Determining When to File
When you have a foreign bank account, there are a few things that you will have to keep in mind in order to properly report your foreign bank account. Not everyone who has a bank account in another country is required to file about this account. First, if you have this account listed under your retirement plan as an investment, you will not need to report this at all since your retirement plan will be the ones who take care of this. In addition, if your account stays under $10,000 all throughout the year, you will not have to report it at all.
The issue here comes when your account gets to or above $10,000. A common mistake is that people assume the account has to be at this level at the end of the tax year. In reality, if your account reaches $10,000 or more at any time of the year, even if it is just for a few days, you will need to report this income. Failure to do so will make it difficult when the IRS finds out.
If you are confused about whether your account needs to be filed during tax time, make sure to contact the professionals at Tax Problem Resolutions to help you out. They can take a look at your account and help you determine the best course of action to make things easier in the long run.
Failure to Report
Failure to report your foreign bank accounts when they reach the minimums that are listed above can get you in trouble. The IRS will eventually figure out that you are hiding this information, either from looking at your standard of living compared to your reported income or by a tip from someone close to you. Once they find out that you are hiding this information for your foreign bank account, they are going to assume you are purposely hiding this information. It does not matter if you really were hiding the information or not, The IRS is going to take some aggressive measures to go after you and take back the taxes that you missed out on.
It is always better for you to report your foreign bank accounts before the IRS finds you. There are defenses that you can use, even if you are late on reporting the account, but you have to report the foreign account before the IRS finds it out themselves. Once the IRS finds out, you are in trouble and will need the right help as soon as possible. The professionals at Tax Problem Resolutions will be here to help no matter what the issue is with your tax return and your foreign bank accounts.
Getting Representation to Help During This Process
It is always better to come to the IRS before they find out about your foreign bank account. You are usually better equipped to get a discount on the taxes and to get your penalties waived. You can still use the defense of not knowing about the foreign bank account laws as well so this can help you get off as well. But once the IRS finds out that you have a foreign bank account that you did not report, they are going to assume you are hiding the information and the money, and you could be in a lot of trouble.
Whether you are reporting the income before the IRS finds you or you are already in trouble for your foreign bank account, make sure to get the right professionals who can help you get through these tax issues and help you get the best resolution on your case. The professionals at Tax Problem Resolutions can help you get started on the right track and get the best resolution when working with the IRS.
If you are dealing with issues concerning not reporting your income from foreign bank accounts, you should not handle this on your own. The IRS is going to come down hard on individuals who they catch not reporting these accounts. Contact Linda Biller with Tax Problem Resolutions, Inc. in Longwood, FL to help out with all your tax issues. We have the professionals who can stand up with you from the beginning so you can get the best resolution when it comes to your foreign tax accounts.
