FBAR Penalties - What if You Filed Late or Never Filed the Form? (Golding and Golding) 2023

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FBAR PENALTIES
Noncompliance with disclosing Foreign Bank and Financial Accounts may lead to FBAR penalties. In recent years, The FBAR (FinCEN Form 114) has taken the spotlight due to the sheer amount of penalties US Person Taxpayers can be liable for if they have not properly reported in prior years. The penalty for late filing the FBAR can range from a Warning Letter in Lieu of Penalties - all the way to a 50% willfulness penalty on the maximum value of the unreported values. Making matters more complex is the fact that Courts across the nation are split on what is considered “reckless disregard” and whether non-willful violations can be penalized per account or per form. While FBAR penalties for late filing and delinquent forms can be tough, the IRS has also developed various International and Offshore Tax Amnesty Programs to facilitate Taxpayers safely getting into compliance for prior year noncompliance with FBAR reporting requirements.