FBAR and U.S. Tax Reporting: Compliance Requirements for Foreign Assets

The IRS has continually reaffirmed its commitment to cracking down on U.S. taxpayers failing to disclose reportable foreign assets. The IRS is intensifying audits for foreign disclosures, and tax advisers need to act quickly to take advantage of the benefits that may apply to their situations.

Tax counsel and advisers must prepare now to assist clients in utilizing any remaining available programs and development methods to ensure reporting compliance. Clients will benefit from substantially reduced or no penalties for failure to report offshore accounts. However, counsel must be aware of the risks in each available program, as the sanctions imposed on taxpayers who willfully fail to disclose are incredibly harsh.

Counsel must first evaluate whether the disclosure program will help a taxpayer avoid increased IRS penalties. If so, counsel must guide the client in meeting the particular requirements of the program. Further changes to the current landscape of offshore reporting may occur at any time, so tax counsel should make client taxpayers aware of the potential tax and penalty savings from disclosure.

Listen as our experienced panel reviews the benefits and burdens of the revised programs and provides best practices in determining whether the programs will benefit clients in the resolution of undisclosed offshore accounts.

I. Delinquent information return program

II. IRS disclosure programs

A. U.S. resident

B. Non-U.S. resident

III. Other available options post-OVDP

IV. Current IRS procedures for evaluating voluntary submittals

The panel will review these and other priority issues:

• Explaining to your client the value of not waiting until the IRS shows up on their doorstep to fix their offshore filing issues
• What is the statute of limitations on IRS assessment when taxpayers fail to meet their obligations to report their offshore assets or accounts and how does this statute of limitations compare with other statutes of limitation found in the Internal Revenue Code?
• What are the requirements for the delinquent international information return submission procedures and the delinquent FBAR submission procedures? When does a taxpayer qualify for these procedures?
• How should tax advisers best navigate the disclosure program requirements?

Learning Objectives

After completing this seminar, you will be able to:

• Recognize the risks and potential benefits of the revised voluntary disclosure programs
• Identify situations in which the taxpayer's failure to disclose may be classified as "willful" by the IRS
• Decide which disclosure program is a better option for a taxpayer with delinquent information reporting

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite:

  Three years+ business or public firm experience at mid-level within the organization, preparing complex tax forms and schedules, supervising other attorneys or accountants. Specific knowledge and understanding of foreign asset information reporting requirements, particularly FATCA and FBAR/FinCen 114; familiarity with IRS audit procedures in examining foreign tax reporting, familiarity with voluntary disclosure programs.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).