Not only is keeping track of your finances challenging, but you might also have to report your financial holdings to the United States government. This process is complex and confusing and can be intimidating. Reports of Foreign Bank and Financial Accounts (FBAR) must be submitted correctly. Mistakes might lead to civil penalties as well as criminal ones.
Americans who hold accounts in foreign banks or financial institutions must submit an FBAR to the U.S. government. The thing about these reports is that they are due around the same time as your taxes, but they are not filed with your taxes. Instead, FBARs go to the Financial Crimes Enforcement Network (FinCEN). The forms may be submitted online through a FinCEN digital portal. However, you might need help filing out the forms from an attorney or tax accountant, especially if your finances are complex. If filing online does not work for you, you have the option of a paper filing, but you must contact FinCEN to obtain the hard copies of the right forms.
Contact our tax CPAs at US Tax Help at (541) 362-9127 to get help with your FBAR and other financial filings.
Filing Your FBAR Online with FinCEN
In today’s increasingly modern and tech-reliant world, all sorts of important financial forms may be filed online, including FBARs. However, Your FBAR is not filed through the same online portals where you might file your taxes. Instead, you must use a specific online portal maintained by the United States government.
The Bank Secrecy Act (BSA) E-Filing System is set up specifically for forms and filing required by the Act, including FBARs. It is supported through a FinCEN-secured network and provides a safe and secure way for people to file FBARs and other forms online. Many people take advantage of this portal, especially Americans living abroad. Filing forms through the mail might be difficult if you live overseas.
Filing your FBAR online is often the fastest way to file your forms, but you should avoid filing too quickly. While you should definitely file on time, you should not file without having your forms reviewed by a tax accountant or an attorney. That way, you can file your forms online knowing that all the information is correct and you are using the right online forms.
How a Lawyer Can Help You File Your FBAR
While FBARs are financial forms, they often have legal implications or consequences, and you might need help from an attorney when you file your FBAR. Remember, the FBAR is required by the Bank Secrecy Act, which is designed to prevent financial crimes and fraud through foreign banks and financial institutions. If your forms are filed incorrectly, contain inaccurate information, or are filed late, you might face legal penalties. As such, having a lawyer by your side is not a bad idea.
Is your FBAR late? Maybe you did not realize you were required to file these forms until the deadline passed. This is not an uncommon problem, especially for people who try to handle complex finances on their own. While accidentally missing a deadline is not a crime, it might raise a few red flags with the government, and you might be questioned or even investigated. It is a good idea to hire a lawyer with experience dealing with financial issues.
Maybe you filed something incorrectly and are now under investigation. In this case, the stakes are a bit higher, and you should hire a lawyer to represent you and assert your defense. Your lawyer can help you convince the authorities that any problem with your FBAR is an unintentional mistake and that you can fix it.
Having a lawyer help you can be extremely beneficial in more ways than one. If you are being investigated, your attorney can help you confront allegations and prepare a defense if necessary. Your lawyer might be able to explain what happened to the authorities and hopefully make the problem go away.
Other Ways to File Your FBAR
Filing an FBAR online can be a fast and easy way to fulfill your legal obligations, but it might not work for everyone. Accessing the online portal might be difficult depending on where you live, especially if you live abroad where internet access is not as readily available. You have the option of filing paper forms in the mail, but you cannot just print these off yourself.
To file a paper FBAR, you must first contact FinCEN and ask for copies of the right forms. You must call FinCEN and request an exemption from e-filing. If your request is approved, FinCEN should send you copies of the forms you need. Be sure to go over your filing requirements thoroughly so you get the right forms. Information about where and how you mail the forms should be included with the forms when you get them.
You might want to consider having someone file on your behalf. A tax accountant or CPA can review your financial situation and complete and file your FBAR for you. This can be helpful for those who might not live within the United States and need a representative to handle certain financial dealings on their behalf. If you want to do this, you must file documentation with FinCEN authorizing someone to file for you.
Why Filing Your FBAR is So Important
Filing your FBAR is not just a legal obligation. Failing to file on file or filing incorrectly may lead to serious legal consequences. If you report your tax return on time and pay any taxes you might owe, the IRS is unlikely to impose penalties for a delinquent FBAR. However, if your taxes are also late or inaccurate, or this is not your first time filing a delinquent FBAR, you might be in some trouble. Remember, contact someone like a lawyer or tax accountant for help well in advance of the filing deadline.
Speak to Our Tax CPAs for Help with Your FBAR
Contact our tax CPAs at US Tax Help by calling (541) 362-9127 to get help with your FBAR and other financial filings.