Under U.S. tax laws, individuals with financial interests in or signature authority over foreign financial accounts—such as bank accounts, brokerage accounts, mutual funds, or trusts—must annually file a report with the IRS using Form TD F 90-22.1, also known as the Report of Foreign Bank and Financial Accounts (FBAR). Failure to comply with FBAR requirements can result in significant civil penalties, up to $100,000 or 50% of the account balance per violation annually.

Reportable Financial Accounts for FBAR:

• Bank accounts (savings, current, fixed deposits, etc.)
• Securities or brokerage accounts
• Accounts managed by brokers or dealers for futures or options transactions
• Accounts held with entities accepting deposits as financial agencies
• Insurance or annuity policies with cash value (e.g., LIC, ULIP)
• Public Provident Fund (PPF) or Provident Fund (PF) accounts
• Shares in mutual funds or similar pooled funds
• Gold stored in bank lockers

At SGFintaxes, we provide comprehensive support and expertise for U.S. residents, including Green Card Holders and U.S. Citizens, ensuring compliance with FBAR regulations. Our services include:

• Consultation and Impact Analysis: Gain insights into tax implications and minimize penalties.
• FBAR Penalty Reduction Strategies: Proactive planning to reduce exposure to penalties.
• Tax Credits and AMT Support: Assistance with Alternative Minimum Tax (AMT) strategies and foreign tax credit optimization.
• Offshore Disclosure Program Assistance: Review and resolution of Offshore Voluntary Disclosure Program (OVDP) cases.
• Mutual Fund and PFIC Computations: Accurate Passive Foreign Investment Company (PFIC) calculations.
• Filing and Amendments: Preparation of forms for OVDP participation, amended tax filings, and delinquent FBAR submissions.
• IRS Representation: Expert representation by enrolled agents, CPAs, or affiliated attorneys.

With SGFintaxes, you receive personalized guidance and trusted expertise to navigate the complexities of FBAR compliance, safeguarding your financial future while adhering to U.S. tax laws.