Foreign Bank Account & Foreign Entity and Investment Reporting

Foreign Bank Account and Foreign Entity Reporting

In an effort to bring transparency to foreign bank accounts and entities, the IRS has strict compliance regulations and reporting requirements. Failing to meet the imposed guidelines can bring about harsh civil penalties, and may even result in criminal prosecution.

International Tax Lawyers

At Terrence A. Grady & Associates Co., L.P.A., protecting our clients’ best interests and their foreign investments is our main priority. Our legal team has a dedicated focus on international taxation and is led by highly respected tax attorney Terrence Grady. Mr. Grady brings more than 30 years of experience in complex legal taxation issues and has been listed among the Best Tax Lawyers in America for multiple years.

If you have assets or business interests abroad, our law firm can help you with:

  • Proper formation of business entities
  • Legal compliance issues associated with owning foreign real estate
  • Reporting requirements for foreign bank accounts and investments
  • Preparing annual Reports of Foreign Bank and Financial Accounts (FBAR)
  • Assist with filings under the Voluntary Disclosure Initiative

Reporting Requirements for International Bank Accounts and Investments

If you are a U.S. citizen with more than $10,000 in an offshore financial account, you are required by law to file an annual Foreign Bank Account Report (FBAR). If you do not, you could face substantial fines and even criminal charges. In addition to the annual FBAR (FinCen Report 114), there is a new disclosure required through the implementation of the Foreign Account Tax Compliance Act (FATCA). The IRS Form 8938 is required to be included with your annual income tax return if you have specified foreign assets that meet the specific filing thresholds.

Our lawyers can help you understand these reporting requirements and make the necessary annual filings on your behalf. For those who have not been compliant with foreign asset reporting in the past, the IRS’s Offshore Voluntary Disclosure Initiative and the various other disclosure options offer a way to disclose all foreign investments to the government, without risk of criminal prosecution.

Legal Compliance for Foreign Business Entities

Owning a business abroad or having a portion of your business operations in another country can bring many financial rewards. However, the U.S. government imposes strict formation and tax guidelines on such entities. These regulations can even extend to those who simply own international real estate or property.

Further, through the 2010 enactment of the Foreign Account Tax Compliance Act (FATCA), the rules and regulations on U.S. businesses with global operations are even more complex.

Our law firm can advise you on the many regulatory aspects of international business operations, beginning with entity selection and proper formation, FATCA impact assessments and compliance plan formation to ongoing advisement in IRS reporting. Our goal is to keep you legally compliant, protect your company from IRS investigations and position your business for continued success.

Contact Our Ohio FBAR Tax Lawyer

Contact our Columbus law firm to learn how we can help with your U.S. tax compliance, foreign bank account and foreign entity reporting, and FATCA compliance.