FBAR and FATCA Filing CPA in NYC

Foreign bank account reporting can get really complicated, which is why you should rely on the expertise available through Miller & Company, LLP. This accounting practice has FBAR-filing CPAs and experts in FATCA reporting. Their goal always is to save you and your business money and reduce your tax burden. Call one of their offices in New York City, Florida or Washington, DC today to avoid costly fines and ensure FBAR compliance.

Do I Need an FBAR-Filing CPA?

A Report of Foreign Bank and Financial Accounts (FBAR) and the Foreign Account Tax Compliance Act (FATCA) are United States reporting requirements designed to combat offshore tax evasion. An experienced FBAR-filing CPA helps you comply with both rules. US taxpayers with foreign financial assets often find it challenging to understand what’s needed for foreign account reporting to ensure FBAR compliance and avoid fines.

If you need FBAR filing help, FBAR compliance assistance or help with FATCA reporting in New York City, call the experts at Miller & Company, LLP. Founded by Paul Miller in 1997, this CPA firm provides exceptional tax accounting services for high-net-worth individuals and business owners, particularly when your tax issues cross state and country borders. These FBAR-filing CPAs provide a complete line of business strategy and tax planning services, including:

• Capital gains tax planning
• Trust and estate accounting
• Multi-state tax accounting
• E-commerce accounting services
• New York State residency tax services

What Are the FBAR Requirements?

You must report foreign financial accounts — such as brokerage accounts, mutual funds and bank accounts — each year by filing a FBAR on Financial Crimes Enforcement Network (FinCEN) Form 114. Requirements to be aware of include:

• You’re required to file this report if you’re a US citizen, trust, estate, corporation, partnership or limited liability company and you have foreign financial accounts with an aggregate value of $10,000 or more at any time during the calendar year.
• It’s the location of the account, not the nationality of the institution that determines whether an account is considered foreign.
• FBAR must be filed annually by April 15 of the year following the calendar year being reported through the BSA e-filing system. You may request an extension to October 15.
• If you don’t have access to all the needed information at the time of filing, you can file an amendment when new information becomes available.
• You must keep records for five years from the due date of the report. Records should contain the name, account number and address of the financial institution. They should also include the type of account and maximum value during the reporting period.

What Are FATCA Requirements?

Some taxpayers with assets with an aggregate value of $50,000 or more may need to file FATCA in addition to FBAR. You file this with your tax return, but it’s best handled by your FBAR compliance expert before the filing date so you can be sure you have all the necessary documentation.

Some foreign financial institutions are required to report financial accounts held by US taxpayers, which means these foreign banks are already reporting your information to the IRS. The term “financial institutions” refers to banks, brokers, investment entities and some insurance companies. Your FATCA filing also requires reporting to the IRS the foreign entities that you as an American taxpayer have a considerable ownership interest in.

The threshold for reporting FATCA varies, based on whether you’re single or married and whether you reside in the US or abroad. You’re smart to use an experienced foreign account reporting CPA to list foreign bank accounts due to the variances in filing requirements based on threshold, reporting rules and forms.

What Are the Benefits of Working with an FBAR-Filing CPA?

An experienced FBAR-filing CPA ensures accuracy, reduces the risk of penalties and provides peace of mind when filing a tax return. The FBAR-filing CPAs at Miller & Company, LLP understand the nuances of international tax reporting and help you avoid costly mistakes. Professional FBAR filing help may include:

• Reviewing foreign account balances and ownership structures
• Determining whether FBAR filing is required
• Preparing and electronically filing FinCEN form 114
• Identifying FATCA reporting obligations
• Coordinating international tax reporting with your annual tax return
• Assisting with delinquent or amended filings

For New York City residents with international financial interests, the professional guidance that Miller & Company provides simplifies an otherwise overwhelming foreign account reporting process. Your tax accountant protects your investments.

What Are the Penalties for Failing to File a FBAR or FATCA?

The penalties of noncompliance with foreign bank account reporting laws can be high, and penalties for failing to file include both civil and criminal penalties. You could also face penalties for filing a FBAR that’s incorrect or incomplete. Penalties include:

• Knowing and willfully filing a false FBAR can lead to criminal penalties of up to $10,000, five years in prison or both.
• Failure to file a FBAR or failure to retain records for five years can incur penalties up to $250,000, five years in prison or both.
• Failure to file a FATCA report when you’re required to may be punished with a penalty up to $10,000. If you don’t file after an IRS notification, there’s an additional penalty up to $50,000.

There are key differences between FBAR and FATCA, and filing one form doesn’t necessarily mean you don’t have to file other forms for your foreign investments. You must report some financial accounts on both forms. If you have foreign bank accounts, don’t take a chance on inaccurate foreign bank account reporting. Contact the experts at Miller & Company, LLP today.

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