According to the US tax statutes, if you have a financial interest in or a signature authority over a foreign financial account (bank account, brokerage account, mutual fund or trust) you need to file an annual report of the account to the Internal Revenue Service by filing Form TD F 90-22.1 - Report of Foreign Bank and Financial Accounts (FBAR). Missing your FBAR filing can lead to huge civil penalty, an amount as large as $100,000 or 50 percent of the account balance for each violation each year.
Reportable financial accounts on FBAR:
• Bank accounts (Saving, Current, Fixed Deposit, etc.)
• Securities or brokerage account
• Account with a person that acts as a broker or dealer for futures or options transactions
• Account with a person in the business of accepting deposits as a financial agency
• Insurance or annuity policy with cash value (LIC, ULIP)
• Public provident fund or PF
• Shares in a mutual fund or similar pooled fund
• Gold kept in bank lockers
Apart from providing a complete insight into the tax code that applies to resident individuals in the United States, including Green Card Holders and US Citizens, MyTaxFiler also assists its clients with the following services:
• Consultation and Impact Analysis
• Analysing and planning to reduce the FBAR penalty
• AMT Strategies, foreign tax credit
• Review of 2009 and 2010 OVDP cases
• Mutual fund or PFIC computations
• Preparation of forms required to participate in the OVDP program
• Preparation of tax amendments and delinquent FBAR
• IRS representation by enrolled agents or affiliated CPAs and attorneys
