La Quinta, CA
(760) 895-3516

Monday, May 4, 2015

Can I Just File Late FBARS?

One of the greatest hopes for anyone finding out that they have to file FBARs for foreign accounts is "Can I just file late FBARS"?

If you have reported ALL taxable income (i.e. interest from the foreign bank accounts) but recently learned that you should have been filing FBARs in prior years to report a personal foreign bank account or to report signature authority over bank accounts owned by an employer, you can file your FBARS late as long as you attach a statement to the FBARs explaining why you are filing late.

Is there a Penalty for Filing Late FBARS when I Reported All Income?

There is no penalty for doing this so long as ALL income was declared on your tax returns. The FBARs are subject to further inspection, so be prepared to prove your claim. If you do have foreign income that was not reported, you will not be able to use this method, you should use either the streamlined program or the offshore voluntary disclosure program.

If you have any questions, please call Borders Bookkeeping today.

(760) 895-3516