Report of Foreign Bank and Financial Accounts (FBAR) rules and the New (2011) Voluntary Offshore Account Disclosure Initiative
The annual Report of Foreign Bank and Financial Accounts ("FBAR") is due on June 30, 2011. Steep civil penalties and criminal sanctions apply to non-compliers.
The IRS has also announced a new 2011 initiative to promote the disclosure of previously unreported offshore accounts and to amend income tax returns to recognize previously unreported income. The initiative requires the filing of amended tax returns and FBARs for the 2003-2010 years and the imposition of a 25% penalty on the highest balance in the accounts over the disclosure period. The initiative ends on August 31, 2011 and all requirements must be met by that date.
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