Avoiding Common FBAR Errors: Missed Accounts, Failure to File, Amending Returns, Delinquent Submission Procedures

There are many reasons taxpayers fail to file an FBAR. They may have no income tax return filing requirement or be a U.S. citizen living abroad and believe their situation negates an FBAR filing requirement. They could have children who are minors and not realize they, too, have an FBAR filing obligation.

Perhaps a tax practitioner filed an FBAR only to discover a taxpayer has an additional reportable foreign retirement account or cash surrender value in a life insurance policy that was omitted. What is certain is the significant penalties charged for these foot faults--$10,000 per form per year and up to 50 percent of the account value if the failure to report is willful.

There are pathways to remedy these missteps. An FBAR can be amended and filed electronically. If the FBAR was not originally filed, nonfilers could take advantage of delinquent submission procedures and streamlined reporting procedures to resolve past noncompliance. Knowing the most appropriate course of action, given the individual's circumstances, is key. Of course, the best practice is to avoid these missteps initially. Tax advisers working with multinational taxpayers need to thoroughly understand the FBAR filing requirements and how to prevent common reporting errors.

Listen as our panel of international tax matters experts divulges best practices to prevent the most frequently made FBAR reporting errors.

I. Avoiding FBAR reporting errors: introduction

II. Penalties

III. Reporting errors

A. Failure to file

1. Living abroad
2. Minors
3. Missed deadlines

B. Failure to report required accounts

1. Retirement accounts
2. Life insurance
3. Signature authority

IV. Remedies

A. Willful vs. nonwillful

B. Amending the FBAR

C. Quiet disclosures

D. Delinquent submission procedures

E. Voluntary disclosures

F. Streamlined reporting

V. Examinations and litigation

VI. Best practices to avoid reporting errors

The panel will cover these and other critical issues:

• Identifying common FBAR reporting errors
• The FBAR reporting requirements for minors, life insurance, and retirement accounts
• Differences in FATCA and FBAR reporting thresholds
• Correcting past noncompliance and errors on previously filed submissions
• Dealing with FBAR examinations and litigation
• Best practices for avoiding FBAR reporting mistakes

Learning Objectives

After completing this course, you will be able to:

• Identify the most common FBAR reporting mistakes
• Determine when foreign retirement accounts need to be reported
• Decide when an amended FBAR return is the best course of action
• Ascertain key differences between FBAR and FATCA reporting thresholds

• 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 preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of international taxation including residency determination, foreign entity classifications, application of treaty benefits, as well as GILTI, Subpart F, and the related Section 250 deductions.

  
  

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).