Best Practices in Reporting Foreign Bank and Financial Accounts in 2015
The U.S. Bank Secrecy Act of 1970 gave the Department of Treasury the authority to collect information from U.S. 'persons' having a financial interest or signatory authority over financial accounts outside the U.S. This requires filing of FinCEN Form 114 if the 'aggregated maximum values' of the foreign financial accounts exceeds $10,000.
The FBAR is not part of the Foreign Account Tax Compliance Act (FATCA) of 2010. One of the many implications of FATCA is that it requires U.S. individual taxpayers to report information about certain foreign financial accounts and offshore assets on Form 8938, and attach it to their income tax return, if the total asset value exceeds a specified reporting amount.
Complying with the reporting of Foreign Bank and Financial Accounts (FBAR) remains to be a tedious, complex, costly, and challenging issue for many companies. The Internal Revenue Service (IRS) imposes civil penalties of up to 50% of the total balance of an account on companies willfully failing to disclose their overseas accounts.
FBAR filing on Form 114 requires advice from highly experienced financial and legal advisors. This LIVE Webcast will teach you how to ensure compliance with these best practices and how to head off potential problems for this year’s FBAR FinCEN Form 114.
In a two hour, LIVE Webcast, a panel of thought leaders and practitioners assembled by The Knowledge Group will review the new requirements for Reporting Foreign Bank and Financial Accounts in 2015, and provide advice to companies and their legal counsel on compliance with the myriad regulations and on avoiding the litigation.
In a two-hour LIVE Webcast, the speakers will discuss:
- FBAR – An Overview
- FBAR vs. FATCA
- Updated FBAR Guidance
- Best FBAR Reporting Practices
- FBAR FinCEN Form 114 Compliance Policy
- Compliance Risk
- Litigation Risk
- Best Practices
- Regulatory Updates
David M. Allen, Partner
Katten Muchin Rosenman LLP
- When should advisors bring up FBAR with their clients
- Discuss asking about foreign financial accounts in questionnaires
- Discuss typical client situations in which advisors should be aware it is a potential concern and they need to ask about foreign financial accounts, including U.S. clients who live outside the U.S., non-U.S. clients who live in the U.S., clients thinking about retiring abroad, clients with children living abroad
- When and where do FBARs need to be filed?
- Discuss updated filing deadline and available filing extension
- Discuss electronic filing requirement
- What penalties does a U.S. person face for failing to file an FBAR?
- Discuss potential civil and criminal penalties
- Discuss difference between “willful” and “nonwillful” failures to file
- Discuss recent penalties that have been assessed and reported on in the news
- What options are available to U.S. persons who have failed to file required FBAR in order to avoid such penalties?
- Discuss increasing risk of doing nothing given intergovernmental agreements and increased transparency
- Discuss potential risks of quiet disclosures
- Discuss current Offshore Voluntary Disclosure Initiative
- Discuss IRS’ Streamlined Disclosure Program
Patrick J. McCormick, Attorney
Kulzer & DiPadova, P.A
- Considerations in reporting assets - which assets are reportable, etc.
- Methods for disclosing retroactive failures to file: streamlined program, OVDP, informational return programs
- Impact of FATCA on current reporting requirements/voluntary disclosure methods
Who Should Attend:
- Tax Lawyers
- Tax Payers
- Tax Managers
- Tax Professionals
- Financial Reporting Personnel
- Enrolled Agents
- Other Related/Interest Professionals
David M. Allen's practice focuses on tax, succession and business planning for clients of significant wealth, including closely held business owners, private equity fund managers, art collectors, corporate executives and other professionals. He handles a wide variety of matters for these clients on local, national and international levels. David is highly skilled in advising clients with regard to tax, succession and charitable planning, probate administration, the integration of estate plans and corporate structures, and cross-border tax planning. He uses an interdisciplinary approach to present solutions to his clients by incorporating members of teams with experience in corporate, real estate, litigation, financial services and other areas of the law, as necessary.
David is a frequent lecturer on various topics. His speaking engagements include presentations regarding estate planning for Florida domiciliaries, trust decanting, estate planning of digital assets, income taxation of trusts, expatriation and international trust and estate planning. David is also a former co-chair of the Chicago Bar Association YLS Estate Planning Committee. While attending law school, David was an associate editor of the Michigan Law Review.
David M. Allen's practice focuses on tax, succession and business planning for clients of significant wealth, including closely held business …
Patrick J. McCormick, Esq. focuses his practice in the areas of tax controversy, compliance, and criminal tax, with a particular emphasis on offshore and international matters. Patrick regularly assists clients with retroactive filing requirements related to offshore assets, assessment of penalties by the Internal Revenue Service for prior failures to file required information for offshore assets, and planning advice related to international assets both for clients living in the United States and those residing abroad. He has authored numerous articles on various topics related to tax compliance, and given frequent presentations on issues of interest to fellow tax practitioners. Patrick received his juris doctorate degree from the Vanderbilt University School of Law, and his LL.M. from New York University.
Patrick J. McCormick, Esq. focuses his practice in the areas of tax controversy, compliance, and criminal tax, with a particular …
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About Katten Muchin Rosenman LLP
Katten is a full-service law firm with approximately 650 attorneys in locations across the United States and in London and Shanghai. Clients seeking sophisticated, high-value legal services turn to Katten for counsel locally, nationally and internationally. The firm’s core areas of practice are corporate, financial services, insolvency and restructuring, litigation, real estate, environmental, commercial finance, intellectual property, structured finance and securitization, and trusts and estates. Katten represents public and private companies in numerous industries, including a third of the Fortune 100, as well as a number of government and nonprofit organizations and individuals. For more information, visit www.kattenlaw.com.
About Kulzer & DiPadova, P.A
Kulzer & DiPadova, P.A. is a tax boutique law firm located outside Philadelphia, PA. The firm limits its practice to the areas of taxation and business matters, including employee benefit planning and compliance, all phases of federal and state tax planning, civil and criminal tax litigation, complex estate planning, estate administration and estate litigation. The firm consists of fourteen attorneys, all of whom either have obtained a Masters in Taxation or are in the process of obtaining such a degree.