If you’re a foreign national operating a U.S. business with foreign bank accounts or assets, compliance is non-negotiable. The IRS and FinCEN take these disclosures seriously, and penalties for non-compliance are steep.

Here’s what you need to know:

FBAR (Foreign Bank Account Report):

• Required if you have foreign financial accounts totaling over $10,000 at any point during the year.
• Filed with FinCEN (not the IRS) by April 15 (with extension to October 15).
• Accounts include bank accounts, investment accounts, and retirement accounts held abroad.
• Failure to file can result in penalties up to 50% of the account balance.

FATCA (Foreign Account Tax Compliance Act):

• Requires U.S. citizens and residents to report foreign financial assets over $200,000 (or $600,000 if married filing jointly).
• Filed on Form 8938 with your tax return.
• Applies to bank accounts, stocks, bonds, and other financial assets.

Form 5471 (Information Return of U.S. Persons With Respect to Certain Foreign Corporations):

• If you own a foreign business or have significant ownership in a foreign corporation, you may need to file this.
• Penalties for non-compliance are severe.

The Bottom Line:
Transparency is key. The IRS has access to foreign bank account data through international agreements. Hiding foreign accounts is not an option—it’s tax evasion.

Pro Tip: Work with a tax advisor experienced in international compliance. The cost of proper filing is minimal compared to penalties for non-compliance.

Operating internationally? Let’s ensure your compliance is airtight. #SiriuslySpeaking #InternationalTax #Compliance