FBAR Attorneys in Dallas, TX
U.S. persons, which include U.S. citizens, resident aliens, trusts, estates, and domestic entities who have an interest in foreign financial accounts and meet the reporting threshold are required under U.S. federal tax law (Title 26 U.S. Code) and the Bank Secrecy Act (Title 31 U.S. Code) to annually report those accounts to the Financial Crimes Enforcement Network (FinCEN) using Form 114 (FBAR).
The FBAR is not a tax form and does not enjoy the privacy protections of a tax return under 26 U.S.C. §6103. This means the FBAR may be shared with other domestic and foreign law enforcement agencies.
Who Must File an FBAR?
A U.S. person must file an FBAR if they:
- Have signature or other authority over a foreign financial account, meaning they can control transactions or dispositions of assets, even if they do not own the funds.
- Are the owner of record or holder of legal title of a foreign financial account, whether for their own benefit or someone else’s.
- Have a financial interest in an account held by another person (for example, if the account is held by an agent, nominee, attorney, or other representative on their behalf).
Types of Reportable Foreign Assets
- Financial deposits and custodial accounts held in a foreign country
- Financial accounts held at a foreign branch of a U.S. financial institution
- Foreign stock or securities held in a financial account at a foreign financial institution
- Foreign mutual funds
- Indirect interests in foreign financial assets through an entity of 50% or greater
- Life Insurance and annuities issued by foreign institution
- Grantor trust assets or instruments issued by foreign institutions
Anyone with ownership, title interest, or signatory authority over these accounts may have FBAR reporting obligations.
Why Timely and Accurate Reporting Is Important
Penalties for failing to report foreign bank and financial accounts are divided into two categories:
Non-Willful Failure
Civil fines up to $10,000 per FBAR (not per account) for inadvertent failures
Willful Failure
Defined by the U.S. Supreme Court as knowing violations and reckless conduct and can be established when:
- The person should have clearly known about their reporting obligation
- There was a grave risk that an accurate FBAR was not being filed; and
- The person could have easily verified the correct reporting
The willful failure to file an FBAR penalty is the greater of $100,000 or 50% of the account balance at the time of violation. There is also a potential for criminal prosecution for willful violations.
Why Choose Coleman Jackson, P.C. for FBAR Representation
As experienced Dallas-based attorneys, we counsel and represent U.S. persons, including Green Card holders, trusts, estates, and others on all aspects for FBAR compliance and enforcement. Our services include:
- Compliance review: Advise on FBAR filing requirements and deadlines
- Violation assessment: Determine if failures are non-willful or willful
- FinCEN representation: Counsel and advocate in reporting and disclosure matters
- IRS & FinCEN investigations: Represent clients in audits, inquiries, or investigations
- Litigation support: Represent clients in civil or criminal FBAR matters in federal courts
Get Expert FBAR Legal Assistance Today
Facing FBAR compliance issues or potential penalties? Contact the FBAR and international tax attorneys at Coleman Jackson, P.C. at (214) 599-0431 for experienced guidance and representation.
