Filing income taxes on its own can be a complicated experience. When compounded with the consideration of international accounts, the process of proper reporting can become an overwhelming prospect. Many individuals with foreign financial interests are unaware of their reporting obligations, increasing the risk of penalties from the IRS.

At ProsperLink Tax Group, our Minneapolis tax consultants are highly experienced in helping U.S. business owners and individuals with financial interests abroad properly identify their obligations and account for them by filing the appropriate forms. 

In accordance with current IRS regulations, all U.S. taxpayers, including citizens, residents, entities, trusts, estates corporations, partnerships, or LLCs with interest in or authority over foreign financial accounts with an aggregate value of $10,000 or more, are required to file the Report of Foreign Bank and Financial Accounts, or the FBAR. Interest in a foreign account is defined by the IRS to be as minimal as a gift from a relative abroad, or as extensive as having an international joint account. 

Often, responsible parties are unaware that their accounts have surpassed the threshold, or that they are considered responsible for reporting their foreign assets. Similarly, many believe themselves free of reporting obligation if their assets are producing no taxable income. As a result, many fail to file the FBAR, leaving themselves liable to stiff penalties from the IRS.

Foreign banking obligations also extend to U.S. residents and non-resident individuals with income in other countries. As these individuals are also required to report all sources of income, these non-citizen U.S. residents must report income generating assets. 

Our Minneapolis tax and financial consulting firm encourages all clients with foreign accounts to visit our tax professional for assistance in properly reporting their assets. During your initial consultation, we review your accounts, ensuring all assets are accurately reported and documented prior to any deadlines. For clients on the receiving end of pending transactions, we comprehensively evaluate your situation to determine whether the transaction is subject to IRS reporting requirements. 

For individuals facing penalties as a result of failing to file the proper documentation, Perras & Associates offers resolution for a number of foreign accounting issues, including 

• Civil penalties
• Negligent penalties
• Knowingly and willingly filing false FBARs
• Failure to file FBARs

By working closely with legal consul, ProsperLink Tax Group can represent your interests before the IRS and negotiate a settlement on your behalf.