If you own some assets outside of the United States, it is likely that you have questions about tax law. The Foreign Account Tax Compliance Act (FATCA) requires Americans and United States residents to report foreign assets. Failure to do so can result in serious penalties with long-term consequences. Fortunately, resources like the Richmond FATCA Amnesty Program may provide assistance in this area.
Richmond’s amnesty program offers assistance for those who are delinquent on taxes, including those related to real estate and personal accounts. Even if you are not currently in compliance with FATCA, a tax law attorney can help you learn about amnesty programs and how they may be able to help you.
Submitting assets as part of FATCA helps taxpayers reduce or avoid penalties for having offshore and international accounts. This applies to individuals, businesses, and organizations. Individuals who have new foreign accounts or who have just recently moved may not be familiar with reporting requirements, which can be detrimental.
In order to remain in compliance with FATCA, taxpayers must submit Form 8938 along with their 1040 Tax Return. This form requires some basic information, including the name of the institution where the asset exists (such as the bank) and the highest balance the account contained. Failure to provide this information can lead to penalties.
Any assets that a United States taxpayer holds elsewhere are reportable according to FATCA. Reportable assets include bank accounts, investment accounts, life insurance, retirement accounts, and mutual funds. Additionally, FATCA applies to US citizens living anywhere, Green Card holders, and tax residents who have a substantial presence in the United States. Those with trusts and estates are required to report assets if the beneficiaries are considered United States residents.
United States taxpayers who have questions about whether assets are reportable to FATCA should consult with an attorney to avoid failing to include all required accounts. The penalties for failing to include assets can have a major financial impact. A Richmond attorney can provide further insight into required reporting, as well as which individuals need to report when multiple people own accounts and possible amnesty programs.
Failure to timely submit or correct the forms required for FATCA can lead to severe penalties. In some cases, failure to file can lead to a penalty of $10,000. Those who continue to delay in filing may be subject to this penalty for each 30-day period, adding up to $50,000 in penalties.
Penalties add up quickly, and the IRS can be difficult to deal with alone. This is why it is so important to work with an attorney who has experience working with FATCA amnesty. Richmond’s program differs from other programs, so it is crucial to discuss penalties and filing with a local attorney.
An experienced attorney can assist you with the Richmond FATCA amnesty program. Tax attorneys know that most people are not trying to evade taxes but rather may not be aware of regulations or what they must report. Your attorney can clear up any confusion and set you on the right path.
Do you have any tax-related concerns? You need to speak with a local tax attorney immediately. At Whiteford Tax Defense, we provide strategies to help you get back on track. Call today to learn more about your options.