Global Asset Compliance
Navigating International Tax Laws
The United States enforces strict reporting requirements for citizens, residents, and certain non-residents who hold financial assets outside of the country. Failure to disclose foreign bank accounts, investments, or offshore entities can trigger devastating financial penalties and even criminal prosecution.
At Goodwill Tax Solutions, we untangle the complexities of international tax compliance. Whether you are an expatriate living abroad, an immigrant maintaining ties to your home country, or a business engaged in cross-border operations, our experts ensure your foreign assets are accurately reported under both the Bank Secrecy Act (FBAR) and the Foreign Account Tax Compliance Act (FATCA).
Did You Know?
Many taxpayers assume that if their foreign accounts do not generate taxable income, they don't need to report them. This is a dangerous misconception. FBAR and FATCA are primarily informational reports, and non-filing penalties can apply regardless of tax liability.
Understanding the Requirements
While they sound similar, FBAR and FATCA are separate laws requiring different forms, thresholds, and filing destinations.
FBAR (FinCEN Form 114)
Report of Foreign Bank and Financial Accounts
Required if the aggregate value of your foreign financial accounts exceeded $10,000 at any time during the calendar year.
- Filed with: Financial Crimes Enforcement Network (FinCEN), not the IRS.
- Deadline: April 15 (with an automatic extension to October 15).
- Penalties: Up to $10,000 per non-willful violation, or 50% of account balances for willful violations.
FATCA (Form 8938)
Statement of Specified Foreign Financial Assets
Required if the value of your specified foreign assets exceeds certain thresholds (e.g., $50k-$100k for individuals residing in the US).
- Filed with: The IRS, attached directly to your annual income tax return.
- Deadline: Your standard tax return filing deadline (including extensions).
- Penalties: Starts at $10,000 per failure to file, with additional penalties for continued failure.
How We Protect You
Accurate Valuation
We accurately calculate your highest aggregate account balances using Treasury-approved exchange rates to determine your exact filing requirements.
Streamlined Procedures
If you were unaware of your filing obligations, we can help you catch up on past-due FBARs and tax returns through IRS amnesty programs, minimizing or eliminating penalties.
Secure E-Filing
We securely electronically file your BSA E-Filing System documents and IRS forms, providing you with verifiable proof of compliance.
Don't Ignore Your Global Assets
The IRS and foreign banks are constantly sharing data. Get ahead of compliance issues today. Schedule a consultation to review your international reporting requirements.