Voluntary Disclosure Process

Sometimes people forget to report their foreign bank accounts on their US returns because of oversight. Once they realize the requirement, they scour the internet and read about scary penalties and jail time involved with nondisclosure. Gary Mehta, CPA, EA represent clients in helping them disclose their bank accounts safely and practically. 

IRS is very detailed on the types of accounts that are subject to disclosure. After a careful review of our client’s foreign finances, we help determine the assets required for declaration. These filings are mandatory, and penalties for non-submission are steep.  

We come across a variety of reasons why people do not disclose their foreign bank accounts. 

Most common reasons include the following: 

· The taxpayer did not know the requirement existed.

· The tax professional had an oversight

· Prospect felt income deposited in the foreign bank account was after-tax income and hence   didn’t have to report it

· Foreign account automatically reports to the US

· No knowledge of the bank account(s)

· Accounts were willfully not reported 

When it comes to requirements for nonresidents and foreign individuals, ach circumstance is different. More often than not, even nonresidents are required to disclose their foreign bank accounts. While they may or may not be subject to disclosing accounts to IRS, they usually have to report material balances to Financial Enforcement Agency (Fincen) in terms of FBAR(FinCEN 114) filings. 

Regardless of the reason, our IRS representation firm works with clients in devising a strategy 

that will minimize their risk and maximize their sleep. 

Although our main office is in Jersey City, we represent clients all over the world who need help with the Streamlined declaration process. We can also meet you at any of our meeting offices including Bridgewater and East Brunswick.  Please contact us for more information regarding this process.