2015 Form 8938 and FBAR Currency Conversion Rates

/0 Comments/in , /by

Currency conversion is a critical part of preparing 2015 FBAR and Form 8938. This is why 2015 Form 8938 and FBAR Currency Conversion Rates are so important.

The 2015 Form 8938 and FBAR Currency Conversion Rates are the December 31, 2015 rates officially published by the U.S. Department of Treasury (they are called “Treasury’s Financial Management Service rates” or the “FMS rates”). Recently, the Treasury Department published the FMS rates for December 31, 2015.

The 2015 Form 8938 and FBAR Currency Conversion Rates also serve for other purposes beyond the preparation of the 2015 FBAR and Form 8938.

The instructions to both forms, the FBAR and Form 8938, require (in case of Form 8938, this is the default choice) to use the 2015 Form 8938 and FBAR Currency Conversion Rates published by the Treasury Department.

For this reason, the 2015 Form 8938 and FBAR Currency Conversion Rates are very important to international tax lawyers and international tax accountants. For your convenience, Sherayzen Law Office provides the table below of the official 2015 Form 8938 and FBAR Currency Conversion Rates (keep in mind, you still need to refer to the official website for any updates).

Country Currency Foreign Currency to $1.00
Afghanistan Afghani 67.9000
Albania Lek 125.5400
Algeria Dinar 106.8780
Angola Kwanza 145.0000
Antigua-Barbuda East Caribbean Dollar 2.7000
Argentina Peso 12.9460
Armenia Dram 484.0000
Australia Dollar 1.3680
Austria Euro 0.9190
Azerbaijan Manat 1.6200
Bahamas Dollar 1.0000
Bahrain Dinar 0.3770
Bangladesh Taka 79.0000
Barbados Dollar 2.0200
Belarus Ruble 18555.0000
Belgium Euro 0.9190
Belize Dollar 2.0000
Benin CFA Franc 602.7900
Bermuda Dollar 1.0000
Bolivia Boliviano 6.8600
Bosnia-Hercegovina Marka 1.7970
Botswana Pula 11.2360
Brazil Real 3.9590
Brunei Dollar 1.4160
Bulgaria Lev 1.7970
Burkina Faso CFA Franc 602.7900
Burma-Myanmar Kyat 1311.0000
Burundi Franc 1600.0000
Cambodia (Khmer) Riel 4103.0000
Cameroon CFA Franc 602.6800
Canada Dollar 1.3860
Cape Verde Escudo 101.2220
Cayman Islands Dollar 1.0000
Central African Republic CFA Franc 602.6800
Chad CFA Franc 602.6800
Chile Peso 709.9800
China Renminbi 6.4920
Colombia Peso 3169.2800
Comoros Franc 435.3000
Congo CFA Franc 602.6800
Congo, Dem. Rep Congolese Franc 920.0000
Costa Rica Colon 531.9400
Cote D’Ivoire CFA Franc 602.7900
Croatia Kuna 6.8200
Cuba Peso 1.0000
Cyprus Euro 0.9190
Czech Republic Koruna 24.2030
Denmark Krone 6.8560
Djibouti Franc 177.0000
Dominican Republic Peso 45.4000
Ecuador Dolares 1.0000
Egypt Pound 7.8300
El Salvador Dolares 1.0000
Equatorial Guinea CFA Franc 602.6800
Eritrea Nakfa 15.0000
Estonia Euro 0.9190
Ethiopia Birr 21.0700
Euro Zone Euro 0.9190
Fiji Dollar 2.1250
Finland Euro 0.9190
France Euro 0.9190
Gabon CFA Franc 602.6800
Gambia Dalasi 40.0000
Georgia Lari 2.4000
Germany FRG Euro 0.9190
Ghana Cedi 3.8200
Greece Euro 0.9190
Grenada East Carribean Dollar 2.7000
Guatemala Quentzel 7.6320
Guinea Franc 8004.0000
Guinea Bissau CFA Franc 602.7900
Guyana Dollar 202.0000
Haiti Gourde 56.5840
Honduras Lempira 22.3000
Hong Kong Dollar 7.7500
Hungary Forint 289.9800
Iceland Krona 129.6700
India Rupee 66.1000
Indonesia Rupiah 13550.0000
Iran Rial 29830.0000
Iraq Dinar 1166.0000
Ireland Euro 0.9190
Israel Shekel 3.8990
Italy Euro 0.9190
Jamaica Dollar 118.7000
Japan Yen 120.4200
Jerusalem Shekel 3.8990
Jordan Dinar 0.7080
Kazakhstan Tenge 339.5000
Kenya Shilling 102.2000
Korea Won 1175.9000
Kuwait Dinar 0.3030
Kyrgyzstan Som 75.5000
Laos Kip 8128.0000
Latvia Euro 0.9190
Lebanon Pound 1500.0000
Lesotho South African Rand 15.5560
Liberia Dollar 88.0000
Libya Dinar 1.3890
Lithuania Euro 0.9190
Luxembourg Euro 0.9190
Macao Mop 8.0000
Macedonia FYROM Denar 56.2900
Madagascar Aria 3196.0000
Malawi Kwacha 662.0000
Malaysia Ringgit 4.2900
Mali CFA Franc 602.7900
Malta Euro 0.9190
Marshall Islands Dollar 1.0000
Martinique Euro 0.9190
Mauritania Ouguiya 330.0000
Mauritius Rupee 35.8000
Mexico New Peso 17.3620
Micronesia Dollar 1.0000
Moldova Leu 19.6000
Mongolia Tugrik 1967.0500
Montenegro Euro 0.9190
Morocco Dirham 9.8740
Mozambique Metical 45.50000
Namibia Dollar 15.5560
Nepal Rupee 105.7500
Netherlands Euro 0.9190
Netherlands Antilles Guilder 1.7800
New Zealand Dollar 1.4610
Nicaragua Cordoba 27.8600
Niger CFA Franc 602.7900
Nigeria Naira 198.9000
Norway Krone 8.8290
Oman Rial 0.3850
Pakistan Rupee 104.7000
Palau Dollar 1.0000
Panama Balboa 1.0000
Papua New Guinea Kina 2.9410
Paraguay Guarani 5750.0000
Peru Nuevo Sol 3.3940
Philippines Peso 46.8360
Poland Zloty 3.9170
Portugal Euro 0.9190
Qatar Riyal 3.6410
Romania Leu 4.1540
Russia Ruble 73.7950
Rwanda Franc 742.3300
Sao Tome & Principe Dobras 22350.3086
Saudi Arabia Riyal 3.7500
Senegal CFA Franc 602.7900
Serbia Dinar 111.2500
Seychelles Rupee 13.0440
Sierra Leone Leone 5750.0000
Singapore Dollar 1.4160
Slovak Republic Euro 0.9190
Slovenia Euro 0.9190
Solomon Islands Dollar 8.0710
South Africa Rand 15.5560
South Sudananese Pound 18.5500
Spain Euro 0.9190
Sri Lanka Rupee 144.1500
St Lucia East Carribean Dollar 2.7000
Sudan Pound 6.6000
Suriname Guilder 4.0000
Swaziland Lilangeni 15.5560
Sweden Krona 8.4430
Switzerland Franc 0.9940
Syria Pound 219.6500
Taiwan Dollar 32.8740
Tajikistan Somoni 7.0000
Tanzania Shilling 2155.0000
Thailand Baht 36.0500
Timor-Leste Dili 1.0000
Togo CFA Franc 602.7900
Tonga Pa’anga 2.1270
Trinidad & Tobago Dollar 6.4040
Tunisia Dinar 2.0330
Turkey Lira 2.9180
Turkmenistan Manat 3.4910
Uganda Shilling 3378.0000
Ukraine Hryvnia 23.9520
United Arab Emirates Dirham 3.6730
United Kingdom Pound Sterling 0.6750
Uruguay New Peso 29.8900
Uzbekistan Som 2857.0000
Vanuatu Vatu 108.5500
Venezuela New Bolivar 6.3000
Vietnam Dong 22480.0000
Western Samoa Tala 2.5020
Yemen Rial 214.5000
Zambia Kwacha (New) 10.9900
Zambia Kwacha 5455.0000
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 2015.

Minneapolis FBAR Attorney | FATCA OVDP Tax Lawyer

/0 Comments/in , /by

If you are looking for a Minneapolis FBAR Attorney, a recommended suggestion would be to retain the services of Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Mr. Sherayzen is a Minneapolis FBAR Attorney and founder of Sherayzen Law Office.

Minneapolis FBAR Attorney: Sherayzen Law Office FBAR Specialization

Sherayzen Law Office specializes in international tax compliance, including voluntary disclosure of delinquent (i.e. late) FBARs. As a Minneapolis FBAR Attorney, Mr. Sherayzen has helped hundreds of US taxpayers worldwide to bring their tax affairs into full compliance with US tax laws.

The work of a Minneapolis FBAR Attorney is not limited only to FBARs. Rather, a Minneapolis FBAR Attorney needs to be able to deliver a variety of services and freely operate with experience and knowledge in all relevant areas of international tax law. For example, oftentimes, the calculation of FBAR penalties may depend upon certain legal and accounting interpretations which would allow one to determine whether one has an income-compliant account. These interpretations themselves may be highly technical in nature and may come from different determinations from other areas of the case.

Moreover, as part of an offshore voluntary disclosure, a Minneapolis FBAR Attorney often needs to amend US tax returns, properly prepare foreign financial statements according to US GAAP, correctly calculate PFICs, and innumerable number of other tasks.

Sherayzen Law Office Legal Team Provides Efficient and Cost-Effective Services

In order to make sure that his work as a Minneapolis FBAR Attorney is expeditious and cost-effective, Mr. Sherayzen built a team of tax professionals that he employs within his firm. Each member of the team is trained personally by Mr. Sherayzen and is assigned specific tasks. For example, an international tax accountant helps Mr. Sherayzen prepare the clients’ tax returns while his staff is trained in creating FBARs based on the information already verified by Mr. Sherayzen.

This team of motivated, intelligent and experienced tax professionals allows Sherayzen Law Office to provide an exceptional array of customized offshore voluntary disclosure and international tax compliance services which fully integrate the legal and accounting aspects of international tax compliance and offshore voluntary disclosures in an efficient and cost-effective manner.

Therefore, if you are looking for a Minneapolis FBAR Attorney, please contact Mr. Sherayzen as soon as possible to secure Your Confidential Consultation!

What Needs to Be Included in the OVDP Preclearance Request

/0 Comments/in , /by

The OVDP Preclearance Request is a very important document that is required to be filed in order to commence a US taxpayer’s voluntary disclosure under the 2014 IRS Offshore Voluntary Disclosure Program (2014 OVDP) which is still in existence at the time of this writing. This is why it is important to understand what actually needs to be included in the OVDP Preclearance Request.

FAQ 23 of the 2014 OVDP details three major requirements for the OVDP Preclearance Request. First, the OVDP Preclearance Request must include the identifying information of the applicant(s), including complete name(s), date(s) of birth, tax identification number(s), address (or adresses), and telephone number(s).

Second, the OVDP Preclearance Request should include the identifying information of all financial institutions at which undisclosed OVDP assets were held during the voluntary disclosure period. The “identifying information” includes complete names of the foreign institutions (including all DBAs and pseudonyms), addresses, and telephone numbers.

It is up to your international tax lawyer to determine the OVDP assets and the voluntary disclosure period prior to filing the OVDP Preclearance Request.

Finally, the OVDP Preclearance Request should include the identifying information of all foreign and domestic business entities (e.g., corporations, partnerships, limited liability companies, foundations, et cetera) and trusts through which the undisclosed OVDP assets (again, this is the determination that needs to be made by your international tax lawyer) were held by the applicant.
Note that this request does not include the entities that are traded on a public stock exchange in the United States or overseas.

This information should be supplied for the entities that were in existence during any period of time during the Voluntary Disclosure Period, including any entities that were dissolved. The determination of the Voluntary Disclosure Period should be done by your international tax lawyer.

The identifying information that should be included in your OVDP Preclearance Request with respect to entities includes: complete names (including all DBAs and pseudonyms), employer identification numbers (if applicable), addresses, and the jurisdiction in which the entities were organized.

The OVDP Preclearance Requests should be accompanied by an executed Form 2848 (IRS Power of Attorney form) if the applicant is represented. I strongly advise that you retain an experienced international tax lawyer to conduct your voluntary disclosure process.

Note that, if your case involves jointly-filed US tax returns, the OVDP Preclearance Request should be prepared for both spouses.

Once the OVDP Preclearance Request is faxed to the IRS, the IRS-CI (Criminal Investigation) may take up to 30 days to notify the applicant’s representative (or the applicant himself (or herself), if the applicant is not represented). In my experience, if the IRS-CI is not busy, it will usually respond within a few weeks, but it can take the whole month. However, there are instances (like the August of 2014 deadline for US taxpayers to secure the 27.5% penalty, instead of 50%) when the IRS-CI is overwhelmed and it can take even a couple of months for them to make the decision on your OVDP Preclearance Request.

Contact Sherayzen Law Office for Experienced and Professional Help With the Voluntary Disclosure of Your Foreign Assets and Foreign Income

If you have undisclosed foreign accounts and you are considering entering the OVDP, you should contact the experienced voluntary disclosure team of Sherayzen Law Office, Ltd. We will handle your entire case, including all legal and accounting documentation (including the preparation of amended tax returns and FBARs). We have helped hundreds of US taxpayers worldwide and we can help you!

Contact Sherayzen Law Office to Schedule Your Confidential Consultation!

Form 8938 Definition of Foreign Financial Institution

/0 Comments/in , /by

Financial accounts maintained by a Foreign Financial Institution constitute one of the main categories of Specified Foreign Financial Assets that need to be reported on IRS Form 8938. While it seems trivial, it is important to understand what is meant by “Foreign Financial Institution” within the context of Form 8938 – i.e. what is the Form 8938 Definition of Foreign Financial Institution?

There are two parts of Foreign Financial Institution that need to be separately defined: “foreign” and “financial institution”.

Form 8938 Definition of Foreign Financial Institution: What is “Foreign”?

For the purposes of Form 8938, a financial institution is foreign if the financial institution is organized under the laws a of a jurisdiction other than United States and its territories. Thus, a domestic financial institution is the one that is organized under the laws of any of the 50 states of the United States, the district of Columbia, and US territories of American Samoa, Guam, the Northern Mariana Islands, Puerto Rico or US Virgin Islands – everything else is foreign.

It is important to note that a foreign financial institution is defined by the laws of a jurisdiction under which it was organized, not by where it operates. Thus, a domestic institution that operates overseas is not foreign.

Form 8938 Definition of Foreign Financial Institution: What is a “Financial Institution”?

Now that we were able to define the “foreign part of the Foreign Financial Institution, let’s turn our attention to the second part of this term – “financial institution”. This concept is defined broadly. In order for a Foreign Financial Institution to be considered a financial institution, it has to do one of the following:

1. Accept deposits in the ordinary course of a banking or similar business);

2. Hold financial assets for the account of others as a substantial part of its business; and

3. Engage (or holds itself out as being engaged) primarily in the business of investing, reinvesting, or trading in securities, partnership interests, commodities, or any interest (including a futures or forward contract or option) in such securities, partnership interests, or commodities.

This definition easily covers banks, credit unions, brokerages, various financial advisors, and everyone who is involved in any of the activities listed above. This even includes financial trusts.

Moreover, a foreign financial institution includes various investment vehicles such as foreign mutual funds, foreign hedge funds, and foreign private equity funds. It should be noted that these types of investment vehicles may also need to be reported on Form 8621 as PFICs.

Contact Sherayzen Law Office for Help With Form 8938 Filing

Filing a correct Form 8938 is an essential part of your US tax compliance. Moreover, failure to file Form 8938 may lead to various penalties and complicate your Offshore Voluntary Disclosure.

This why you need to help of the experienced tax team of Sherayzen Law Office. We have helped hundreds of US taxpayers to bring and maintain their US tax affairs into full compliance and we can help you.

Contact Us Today to Schedule Your Confidential Consultation!

Higher OVDP Penalty Risk for US Taxpayers With Foreign Accounts

/0 Comments/in , /by

December of 2015 was one of the most successful months for the DOJ’s Swiss Bank Program as nearly a record number of banks signed non-prosecution agreements. This success for the DOJ means that more and more of non-compliant US taxpayers with foreign accounts are likely to deal with Higher OVDP Penalty with respect to their undisclosed foreign accounts.

DOJ’s Swiss Bank Program

The Program for Non-Prosecution Agreements or Non-Target Letters for Swiss Banks (Program) was announced by the US Department of Justice on August 29, 2013. The Program was intended to achieve multiple goals, but there are four of them that are most important to the understanding of the Higher OVDP Penalty and the Program.

First, this was an “offer that one cannot refuse” for the Swiss banks– the Program was intended to “allow” (or force) Swiss banks to bring themselves into compliance with US tax laws. In exchange, the Swiss banks received a non-prosecution agreement that promised them protection from US legal enforcement actions.

Second, the Program was intended to obtain as much information as possible about non-compliant US taxpayers with foreign accounts.

The third important goal was to create an atmosphere of global enforcement that would make US voluntary disclosure the most rational choice for non-compliant US taxpayers with foreign accounts given the risk of IRS discovery of their undisclosed foreign accounts.

Fourth, the Program was intended to pave the way for easier acceptance of FATCA throughout the world by demonstrating what could potentially happen in any country that decides to resist the implementation of FATCA.

It must be stated that the Swiss Bank Program has been a spectacular success for the DOJ and the IRS. Both, the banks and non-compliant US taxpayers with foreign accounts flocked to the voluntary disclosure programs. Moreover, today, FATCA is the new global standard of international tax enforcement.

2014 OVDP

The current 2014 IRS Offshore Voluntary Disclosure Program is a modification of 2012 OVDP which, in turn, was the continuation of a series of prior IRS offshore voluntary disclosure programs (particularly 2011 OVDI). The 2014 OVDP is designed to help non-compliant US taxpayers with foreign accounts to bring their tax affairs into compliance with US tax laws.

2014 OVDP has a two-tier penalty system. The 50% penalty rate applies to US taxpayers with foreign accounts in the banks on the special IRS list. The 27.5% penalty rate applies to everyone else.

Influence of the Program on the OVDP

The Swiss Bank Program has a direct impact on the IRS Offshore Voluntary Disclosure Program because every Swiss Bank that signs a Non-Prosecution Agreement under the Program is automatically added to the 50% penalty list of foreign banks.

Thus, as more and more Swiss Banks reach an agreement with the DOJ under the Program, the list of 50% penalty banks keeps expanding and so does the list of US taxpayers with foreign accounts who may be subject to this higher penalty rate.

What Should Non-Compliant US Taxpayers With Foreign Accounts Do?

The growing risk of higher OVDP penalty means that non-compliant US taxpayers with foreign accounts should explore their voluntary disclosure options as soon as possible by contacting an experienced international tax lawyer.

It is a mistake to assume that 50% penalty list will grow only as a result of the Swiss Bank Program. Even today, the list already contains banks which are located outside of the United States (such as HSBC India and Israeli Bank Leumi). This means that any bank in almost any part of the world may tomorrow be on the 50% penalty list and US taxpayers with foreign accounts in this bank would be forced to pay a much higher penalty.

Contact Sherayzen Law Office for Professional Tax Help With The Voluntary Disclosure of Your Foreign Accounts

The growing risk of higher OVDP penalty means that you should contact the experienced international tax team of Sherayzen Law Office. International tax attorney and Founder of Sherayzen Law Office, Mr. Eugene Sherayzen, will personally analyze your case, estimate your IRS penalty exposure, determine your offshore voluntary disclosure options, and implement your customized voluntary disclosure plan to resolve your US tax problems.