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File Your FBAR on Time to Avoid Penalties
Any U.S. person with a financial interest in or authority over foreign financial accounts may be required to file a Report of Foreign Bank and Financial Accounts (FBAR). An FBAR is required if the aggregate value of the accounts exceeds $10,000 at any time during the calendar year. FBARs are due April 15 of the following calendar year, though an automatic extension is allowed.
For purposes of FBAR requirements, here are the definitions of some key terms:
U.S. person. This includes U.S. individuals (adults or children), resident aliens, and specific entities, such as corporations, partnerships, trusts and limited liability companies.
Foreign financial account. An account is considered foreign if maintained in a bank outside the United States, even if the institution is a U.S. bank.
Financial interest. A U.S. person has a financial interest in a foreign financial account if he, she or it is the owner of record or holder of legal title, even if the account is for the benefit of another person. Financial interest may also exist if the owner of record or holder of legal title is one of several entities controlled by or on behalf of a U.S. person.
The FBAR rules can be complex, and penalties for noncompliance can be significant. Contact us with questions.
Options for Paying Your Tax Bill
If you owe federal tax, you can typically use credit and debit cards to pay directly or through certain third-party apps. However, the number of cards you can use when submitting individual tax forms is generally limited to two per year or two per month (for details: Frequency limit table by type of tax payment | Internal Revenue Service ).
Also, there are processing fees involved. The cost of using a personal debit card is $2.15. It’s 1.75% of the total ($2.50 minimum) if you use a personal credit card. Commercial debit or credit cards are charged 2.89% ($2.50 minimum). And, you’ll likely incur interest if you carry a credit card balance. Note: Employers can’t use credit or debit cards to pay federal tax deposits.
Stay Ahead of Business Cybercrime
Business owners, beware. Identity theft is a growing threat that can cripple your business or shut it down forever. Signs of business identity theft include the inability to file a tax return because a return has already been filed using the business ID number, a request for a routine extension is rejected, and tax transcripts obtained by the business don’t match its tax returns.
To help stay ahead of this cybercrime, install anti-malware and anti-virus software and employ firewalls. Use multi-factor authentication, encrypt and backup sensitive files, and limit personnel with access to these files. Contact the office with questions, or click here for more information: Identity theft information for businesses | Internal Revenue Service
