While earning money or having overseas accounts is not illegal, this income must be reported annually. A U.S. citizen and resident must file yearly a report of offshore accounts if the offshore accounts total over $10,000.
The reporting form is a Report of Foreign Bank and Financial Accounts (FBAR). Failure to file the FBAR by the June 31st deadline is a felony each year the form is not filed. A second form (IRS Form 8938) disclosing offshore assets must be filed yearly with the income tax return. This form is required under the Foreign Account Tax Compliance Act (FATCA). The assets which must be reported include bank accounts, brokerage accounts, and various other assets. The amount of offshore assets which require FATCA filing start at $50,000 and go up based on factors such as marital status and whether you live in the U.S. or abroad. The requirement to report offshore assets through yearly FBAR and FATCA forms is an obligation of all U.S citizens and noncitizen residents.
All income must be reported on your U.S. tax return, regardless of where that income was earned. If you are a U.S. citizen working overseas, you must report your income to the IRS regardless of whether you pay taxes to the country where you work. Credits and deductions may mean that you do not owe U.S. taxes, but you are still required to report income.
The federal government does have a voluntary program to help offshore account holders report their foreign income to the Internal Revenue Service. The Offshore Voluntary Disclosure Program can help those with undisclosed offshore income.
The Orlando federal criminal defense attorneys at the Law Offices of Horwitz & Citro, P.A., can help you create an effective defense solution. This can include participation in the Offshore Voluntary Disclosure Program and aggressively defending you against criminal accusations, if necessary. It's vital that you begin working with our Orlando tax crimes attorneys as soon as poosible, because penalties may increase every day.
Call (407) 901-5852 for violations regarding unreported offshore accounts and foreign income. At the Law Offices of Horwitz & Citro, P.A., our phones are answered 24 hours a day and we offer complimentary case consultations to help you get started.
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