By: Amanda Wilson
As I discussed in a prior blog post (found here), if you have more than $10,000 in a foreign bank account, you are obligated to file Form 114 (commonly known as an FBAR). Failure to make this filing can result in significant civil penalties, and can also result in some cases in jail time.
To help bring taxpayers into compliance with, the IRS has an Offshore Voluntary Disclosure Program through which taxpayers can make late FBAR filings. Yesterday, the IRS announced that it is terminating the program as of September 28, 2018.
What does this mean for you if you failed to file FBARs? You should consider doing so now, before this program comes to an end. As I have previously advised, it is important to be proactive and address the situation before the IRS finds you. If the IRS finds you first, your options are much more limited.