FBAR & FATCA Foreign Asset Compliance
Rigorous reporting of foreign bank accounts and offshore financial assets under the Bank Secrecy Act and FATCA regulations to prevent severe penalties.
Key Highlights & Scope of Service
Global Asset Disclosure & Strict Federal Compliance
If you are a U.S. Citizen, Permanent Resident (Green Card holder), or a Resident Alien for tax purposes (such as an H-1B, L-1, or long-term resident on a visa) and you hold financial interests in or signature authority over foreign accounts, U.S. law strictly mandates annual reporting.
Under the Bank Secrecy Act and the Foreign Account Tax Compliance Act (FATCA), the U.S. Department of the Treasury and IRS actively enforce international financial reporting. Failure to file can trigger catastrophic civil penalties starting at $10,000+ per non-willful violation, or up to 50% of account balances for willful failure.
FBAR (FinCEN 114) vs. FATCA (Form 8938) Requirements
• FBAR (FinCEN Form 114): Required if the aggregate highest balance of ALL your foreign financial accounts (bank accounts, fixed deposits, mutual funds, brokerage accounts, PF) exceeds $10,000 at any point during the calendar year.
• FATCA (Form 8938): Filed directly with your Form 1040 if specified foreign assets exceed higher thresholds (e.g. $50,000 at year-end or $75,000 anytime for single filers; $100,000 / $150,000 for married couples living in the U.S.).
Streamlined Compliance for Delinquent Years
If you failed to report foreign bank accounts in previous years because you were unaware of the requirement, GVP Tax Consulting can help you utilize the IRS Streamlined Filing Compliance Procedures to catch up without facing crippling civil or criminal penalties.