The Voluntary Disclosure Period for the taxpayers who entered into the IRS Offshore Voluntary Disclosure Program (“OVDP”) encompasses an eight-year period during which the FBAR form may have been modified more than once. The question arises about what version of the FBAR form should be used in the OVDP.
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 the 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, FinCEN Form 114 formerly Form TD F 90-22.1 (also known as the “FBAR”) must be filed with the DOT.
OVDP Guidance on the FBAR Version
The IRS unequivocally stated that, during the OVDP process, the taxpayers should use the most current version Form 114, for filing delinquent FBARs to report foreign accounts maintained in prior years. However, the taxpayers may rely on the FBAR guidance that was applicable for the calendar year that is being reported.
As of February of 2013, the most current version was the one that was revised in January 2012.
Contact Sherayzen Law Office for Help With Your Offshore Voluntary Disclosure
Our international tax firm is highly experienced in conducting offshore voluntary disclosures. We will thoroughly analyze your case, assess your current FBAR liability as well as the liability that you would face under the OVDP, determine the available disclosure options and implement the appropriate disclosure strategy (including preparation of all legal and tax documents as well as IRS representation).