FBAR lawyers minnesota
FBAR Disclosure of Offshore Assets: the Importance of Issue Spotting
/in FBAR lawyers Minnesota, Legal Notes /by ManagerIt is terrifying that so many accountants who take on the legal issue of FBAR disclosure are not trained in issue spotting. It may be the number one of the top reasons why so many voluntary disclosures handled by accountants and even attorneys have gone so wrong.
A lot of tax professionals who are familiar with voluntary disclosures concerning foreign accounts simply concentrate on the bigger issue of FBAR penalties. However, due to this over-simplification of the voluntary disclosure, they ignore the fact that most disclosures of offshore assets involve a lot of related issues that, besides their own importance, may directly influence the FBAR disclosure strategy.
For example, I have seen cases where accountants would begin a voluntary disclosure process with respect to foreign investment accounts that contains foreign mutual funds – the issue that immediately should be spotted by the accountants as potentially involving PFICs. Unfortunately, most accountants are not even aware of the existence of PFICs and their unique place in the Internal Revenue Code. Then, without recognizing this problematic issue, these accountants would herd their clients into the IRS Offshore Voluntary Disclosure Program (OVDP) closed claiming that there was full compliance with the accounts and claiming that these accounts should be excluded from the OVDP Offshore Penalty. The end-result in such cases would often be the rejection of the exclusion based on PFIC increase in tax (i.e. the PFIC distributions were reported but incorrectly calculated – i.e. income tax non-compliance).
Obviously, how the case would turn out would ultimately depend on its particular facts, but this is an example indicate of the trend and why it is so important to engage in issue-spotting.
Contact Sherayzen Law Office for Help with Your Voluntary Disclosure of Offshore Assets
If you have undisclosed foreign assets that should have been disclosed to the IRS on the FBAR, Form 8398 or other information returns, contact Sherayzen Law Office for help.
Our experienced international tax law firm will thoroughly review your case, identify the issues involved in your case, estimate your FBAR penalties, propose a definite action plan on how to deal with your situation and implement this plan.
Call or email our experienced voluntary disclosure team NOW!
Official Treasury Currency Conversion Rates of December 31, 2012
/in FBAR lawyers Minnesota, Legal Notes /by ManagerEvery year, the U.S. Department of Treasure publishes its official currency conversion rates (they are called “Treasury’s Financial Management Service rates” or the “FMS rates”). Recently, the Treasury Department published the FMS rates for December 31, 2012. While there are other good reasons for the existence of these rates, the FMS rates for December 31 are especially important for persons who are required to file the FBARs.
The latest (January 2012) FBAR instructions require the use of Treasury’s Financial Management Service rates, if available, to determine the maximum value of a foreign bank account. In particular, the FBAR instructions state:
In the case of non-United States currency, convert the maximum account value for each account into United States dollars. Convert foreign currency by using the Treasury’s Financial Management Service rate (this rate may be found at www.fms.treas.gov) from the last day of the calendar year. If no Treasury Financial Management Service rate is available, use another verifiable exchange rate and provide the source of that rate. In valuing currency of a country that uses multiple exchange rates, use the rate that would apply if the currency in the account were converted into United States dollars on the last day of the calendar year.
For this reason, the international tax attorneys take their time to compile these rates with all updates. For your convenience, Sherayzen Law Office provides a table of the official Treasury currency conversion rates below (keep in mind, you still need to refer to the official website for any updates).
| Country | Currency | Foreign Currency to $1.00 |
| Afghanistan | Afghani | 51.8000 |
| Albania | Lek | 105.6500 |
| Algeria | Dinar | 77.8130 |
| Angola | Kwanza | 95.0000 |
| Antigua-Barbuda | East Caribbean Dollar | 2.7000 |
| Argentina | Peso | 4.9100 |
| Armenia | Dram | 406.0000 |
| Australia | Dollar | 0.9640 |
| Austria | Euro | 0.7590 |
| Azerbaijan | Manat | 0.8000 |
| Bahamas | Dollar | 1.0000 |
| Bahrain | Dinar | 0.3770 |
| Bangladesh | Taka | 81.0000 |
| Barbados | Dollar | 2.0200 |
| Belarus | Ruble | 8550.0000 |
| Belgium | Euro | 0.7590 |
| Belize | Dollar | 2.0000 |
| Benin | CFA Franc | 496.0000 |
| Bermuda | Dollar | 1.0000 |
| Bolivia | Boliviano | 6.9600 |
| Bosnia-Hercegovina | Marka | 1.4840 |
| Botwana | Pula | 7.7700 |
| Brazil | Real | 2.0470 |
| Brunei | Dollar | 1.2220 |
| Bulgaria | Lev | 1.4840 |
| Burkina Faso | CFA Franc | 496.0000 |
| Burma | Kyat | 852.0000 |
| Burundi | Franc | 1535.0000 |
| Cambodia (Khmer) | Riel | 4103.0000 |
| Cameroon | CFA Franc | 496.0000 |
| Canada | Dollar | 0.9950 |
| Cape Verde | Escudo | 82.6850 |
| Cayman Islands | Dollar | 0.8200 |
| Central African Republic | CFA Franc | 496.0000 |
| Chad | CFA Franc | 496.0000 |
| Chile | Peso | 478.3500 |
| China | Renminbi | 6.2300 |
| Colombia | Peso | 1766.4000 |
| Comoros | Franc | 361.3500 |
| Congo | CFA Franc | 496.0000 |
| Congo, Dem. Rep | Congolese Franc | 920.0000 |
| Costa Rica | Colon | 509.7000 |
| Cote D’Ivoire | CFA Franc | 496.0000 |
| Croatia | Kuna | 5.6300 |
| Cuba | Peso | 1.0000 |
| Cyprus | Euro | 0.7590 |
| Czech Republic | Koruna | 18.6300 |
| Denmark | Krone | 5.6600 |
| Djibouti | Franc | 177.0000 |
| Dominican Republic | Peso | 40.1000 |
| Ecuador | Dolares | 1.0000 |
| Egypt | Pound | 6.3560 |
| El Salvador | Dolares | 1.0000 |
| Equatorial Guinea | CFA Franc | 496.0000 |
| Eritrea | Nakfa | 15.0000 |
| Estonia | Euro | 0.7590 |
| Ethiopia | Birr | 18.1800 |
| Euro Zone | Euro | 0.7590 |
| Fiji | Dollar | 1.7590 |
| Finland | Euro | 0.7590 |
| France | Euro | 0.7590 |
| Gabon | CFA Franc | 496.0000 |
| Gambia | Dalasi | 34.0000 |
| Georgia | Lari | 1.6600 |
| Germany FRG | Euro | 0.7590 |
| Ghana | Cedi | 1.9050 |
| Greece | Euro | 0.7590 |
| Grenada | East Carribean Dollar | 2.7000 |
| Guatemala | Quentzel | 7.9020 |
| Guinea | Franc | 6970.0000 |
| Guinea Bissau | CFA Franc | 496.0000 |
| Guyana | Dollar | 202.0000 |
| Haiti | Gourde | 42.1500 |
| Honduras | Lempira | 19.9100 |
| Hong Kong | Dollar | 7.7500 |
| Hungary | Forint | 221.9600 |
| Iceland | Krona | 128.0100 |
| India | Rupee | 54.4500 |
| Indonesia | Rupiah | 9700.0000 |
| Iran | Rial | 8229.0000 |
| Iraq | Dinar | 1166.0000 |
| Ireland | Euro | 0.7590 |
| Israel | Shekel | 3.7320 |
| Italy | Euro | 0.7590 |
| Jamaica | Dollar | 92.0000 |
| Japan | Yen | 86.1600 |
| Jerusalem | Shekel | 3.7320 |
| Jordan | Dinar | 0.7080 |
| Kazakhstan | Tenge | 150.7000 |
| Kenya | Shilling | 86.1000 |
| Korea | Won | 1063.2400 |
| Kuwait | Dinar | 0.2810 |
| Kyrgyzstan | Som | 47.1000 |
| Laos | Kip | 7966.0000 |
| Latvia | Lats | 0.5290 |
| Lebanon | Pound | 1500.0000 |
| Lesotho | South African Rand | 8.4850 |
| Liberia | Dollar | 49.0000 |
| Libya | Dinar | 1.2840 |
| Lithuania | Litas | 2.6180 |
| Luxembourg | Euro | 0.7590 |
| Macao | Mop | 8.0000 |
| Macedonia FYROM | Denar | 45.4000 |
| Madagascar | Aria | 2267.8200 |
| Malawi | Kwacha | 344.0000 |
| Malaysia | Ringgit | 3.0570 |
| Mali | CFA Franc | 496.0000 |
| Malta | Euro | 0.7590 |
| Marshall Islands | Dollar | 1.0000 |
| Martinique | Euro | 0.7590 |
| Mauritania | Ouguiya | 300.0000 |
| Mauritius | Rupee | 30.4500 |
| Mexico | New Peso | 13.0400 |
| Micronesia | Dollar | 1.0000 |
| Moldova | Leu | 12.0630 |
| Mongolia | Tugrik | 1394.3100 |
| Montenegro | Euro | 0.7590 |
| Morocco | Dirham | 8.4340 |
| Mozambique | Metical | 29.6000 |
| Namibia | Dollar | 8.4850 |
| Nepal | Rupee | 87.3000 |
| Netherlands | Euro | 0.7590 |
| Netherlands Antilles | Guilder | 1.7800 |
| New Zealand | Dollar | 1.2160 |
| Nicaragua | Cordoba | 24.1000 |
| Niger | CFA Franc | 496.0000 |
| Nigeria | Naira | 156.1000 |
| Norway | Krone | 5.5840 |
| Oman | Rial | 0.3850 |
| Pakistan | Rupee | 97.1800 |
| Palau | Dollar | 1.0000 |
| Panama | Balboa | 1.0000 |
| Papua New Guinea | Kina | 1.9440 |
| Paraguay | Guarani | 4245.0000 |
| Peru | Nuevo Sol | 2.5500 |
| Philippines | Peso | 41.0400 |
| Poland | Zloty | 3.1040 |
| Portugal | Euro | 0.7590 |
| Qatar | Riyal | 3.6400 |
| Romania | Leu | 3.3660 |
| Russia | Ruble | 30.5230 |
| Rwanda | Franc | 630.0300 |
| Sao Tome & Principe | Dobras | 18469.0610 |
| Saudi Arabia | Riyal | 3.7500 |
| Senegal | CFA Franc | 496.0000 |
| Serbia | Dinar | 86.1800 |
| Seychelles | Rupee | 12.9580 |
| Sierra Leone | Leone | 4317.0000 |
| Singapore | Dollar | 1.2220 |
| Slovak | Euro | 0.7590 |
| Slovenia | Euro | 0.7590 |
| Solomon Islands | Dollar | 7.3210 |
| South Africa | Rand | 8.4850 |
| Spain | Euro | 0.7590 |
| Sri Lanka | Rupee | 127.5000 |
| St Lucia | East Carribean Dollar | 2.7000 |
| Sudan | Pound | 5.9000 |
| Suriname | Guilder | 3.3500 |
| Swaziland | Lilangeni | 8.4850 |
| Sweden | Krona | 6.5120 |
| Switzerland | Franc | 0.9160 |
| Syria | Pound | 63.0000 |
| Taiwan | Dollar | 29.0440 |
| Tajikistan | Somoni | 4.7600 |
| Tanzania | Shilling | 1580.0000 |
| Thailand | Baht | 30.5800 |
| Timor-Leste | Dili | 1.0000 |
| Togo | CFA Franc | 496.0000 |
| Tonga | Pa’anga | 1.6570 |
| Trinidad & Tobago | Dollar | 6.3500 |
| Tunisia | Dinar | 1.5500 |
| Turkey | Lira | 1.7860 |
| Turkmenistan | Manat | 2.8430 |
| Uganda | Shilling | 2686.0000 |
| Ukraine | Hryvnia | 8.0400 |
| United Arab Emirates | Dirham | 3.6730 |
| United Kingdom | Pound Sterling | 0.6180 |
| Uruguay | New Peso | 19.0500 |
| Uzbekistan | Som | 2014.0000 |
| Vanuatu | Vatu | 90.1000 |
| Venezuela | New Bolivar | 4.3000 |
| Vietnam | Dong | 21000.0000 |
| Western Samoa | Tala | 2.2050 |
| Yemen | Rial | 214.5000 |
| Zambia | Kwacha | 5185.0000 |
| Zimbabwe | Dollar | 1.0000 |
1. Lesotho’s loti is pegged to South African Rand 1:1 basis
2. Macao is also spelled Macau: currency is Macanese pataka
3. Macedonia: due to the conflict over name with Greece, the official name if FYROM – former Yugoslav Republic of Macedonia.
4. Please, refer to the Treasury’s website for amendments regarding any reportable transactions in January, February, and March of 2013.
2012 FBAR is Due on June 30, 2013
/in FBAR lawyers Minnesota, Legal Notes /by ManagerOne of the most important tax compliance forms for businesses and individuals is the Report of Foreign Bank and Financial Accounts (the “FBAR”), FinCEN Form 114 Formerly TD F 90-22.1. Pursuant to the Bank Secrecy Act, 31 U.S.C. §5311 et seq., the Department of Treasury (the “DOT”) has established certain recordkeeping and filing requirements for United States persons with financial interests in or signature authority (and other comparable authority) over financial accounts maintained with financial institutions in foreign countries. If the aggregate balances of such foreign accounts exceed $10,000 at any time during the relevant year, the FBAR must be filed with the DOT.
The FBAR must be filed by June 30 of each relevant year, including this year (2013). Thus, the 2012 FBAR must be received by the DOT by June 30, 2013. This rule is contrary to your regular tax returns where the mailing date determines whether the filing is timely. There are no extensions available – the FBAR must be received by June 30 or it will be considered delinquent.
If the FBAR becomes delinquent, it may be subject to severe penalties.
Contact Sherayzen Law Office for FBAR Assistance
If you have any questions or concerns regarding whether you need to file the FBAR or how to prepare the form, please contact Sherayzen Law Office directly. If you have not previous filed the FBARs and you were required to do so, you may be subject to severe penalties and you may need to do some form of a voluntary disclosure. In such case, you need to contact our experienced international tax attorneys to schedule a consultation as soon as possible. Attorney Eugene Sherayzen will assess your situation, determine your potential FBAR liability, explain the available options, prepare all of the required tax forms and the necessary legal documentation, guide you through this complex process of voluntary disclosure, and vigorously represent your interests during your negotiations with the IRS.
FBAR Attorney
/in FBAR lawyers Minnesota, Legal Notes /by ManagerIf you are looking for an attorney to help you with your FBAR issues, contact Sherayzen Law Office.
Sherayzen Law Office is an international tax and business law firm that specializes in FBAR compliance among other international tax issues. Our office is located in Minneapolis, but we have clients throughout the United States and overseas.
Helping U.S. taxpayers who have FBAR issues is one of our most important specializations. FinCEN Form 114 formerly Form TD F 90-22.1, the Report of Foreign Bank and Financial Accounts (commonly known as the “FBAR”), is not the most complex form in the Internal Revenue Code, but it is definitely one of the most severe forms when it comes to penalties. A lot of U.S. taxpayers either do not know about this form, do not realize how important it is, or they already realized that they should have filed the FBAR earlier and do not know how to get out of the vicious cycle of non-compliance.
Our international tax firm is highly experienced in these delinquent FBAR matters, including the voluntary disclosure process. We will analyze your case thoroughly, determine your FBAR liability and identify your voluntary disclosure options. Once you make your choice with respect to your voluntary disclosure option, we will create and implement a customized case strategy, including preparation of all of the necessary tax forms and legal briefs.
Clients of Sherayzen Law Office enjoy the personal attention of Mr. Eugene Sherayzen, the firm’s owner, who will be working with you throughout the process in order to make sure that your case proceeds efficiently. He is easily accessible by phone and email throughout the case.
We believe that each case is unique, especially in such complex matters as FBAR voluntary disclosure. Our international tax law firm will be looking for the unique features in your particular fact pattern to determine the most expeditious and favorable manner to proceed with your case.
One the biggest problems facing U.S. taxpayers in finding the right FBAR representation at this point is the tendency among some accounting firms and even law firms to disregard the special circumstances of a case and automatically channel their clients into the 2012 OVDP (Offshore Voluntary Disclosure Program) at the highest penalty rates with the idea that they will figure out later what the strategy of the case will be and whether the taxpayer needs to opt-out of the program.
We believe that this is an incorrect approach which completely disregards the individual circumstances of each taxpayer and may subject them to an unnecessarily high penalties and additional legal and accounting fees. Each case should be thoroughly analyzed at the beginning of the process before the taxpayers enters the 2012 OVDP, not in the middle or even at the end of the voluntary disclosure.
Contact Sherayzen Law Office for Help with FBARs
If you have any undisclosed foreign financial accounts, contact Sherayzen Law Office as soon as possible for an individual, comprehensive, creative and ethical approach to your voluntary disclosure process.