![]() ![]() “Cherry Bekaert” is the brand name under which Cherry Bekaert LLP and Cherry Bekaert Advisory LLC provide professional services.Ĭherry Bekaert LLP and Cherry Bekaert Advisory LLC practice in an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations and professional standards. Cherry Bekaert LLP is a licensed CPA firm that provides attest services, and Cherry Bekaert Advisory LLC and its subsidiary entities provide tax and advisory services. “Cherry Bekaert” is the brand name under which Cherry Bekaert LLP and Cherry Bekaert Advisory LLC, independently owned entities, provide professional services in an alternative practice structure in accordance with applicable professional standards. The best practice would be to include an attachment to the FBAR form that lists all of the financial accounts.įor questions about FBARs or other foreign financial accounts or assets, contact a member of the Cherry Bekaert International Tax team. Note that accounts are not required to be separately listed on the FBAR form if the taxpayer has a financial interest in 25 or more accounts, which raises the question of how penalties would be assessed if the taxpayer did not provide the correct number of accounts on the FBAR form. ![]() With the uncertainty created by the conflicting views in the courts, it will be imperative to make sure that not only is an FBAR filed, but that all accounts have been accounted for when filing the FBAR form. 2021), the 5 th Circuit held that the non-willful FBAR penalties apply per account, not per form. 2021), the 9 th Circuit held that the non-willful FBAR penalties applied per form, not per account. Two of the District Court cases were appealed to their respective Circuit Courts, which recently rendered decisions. District Court for the Southern District of Florida ( United States v. In most cases, the District Courts have agreed with the taxpayers but a decision in the U.S. Taxpayers have disagreed with this position and filed suit in several District Courts. Thus, even if an FBAR has been filed, failure to include an account on the form would be considered a violation. The IRS has taken the position that a “violation” is the failure to report an account. Unfortunately, Title 31 does not define whether a “violation” is the failure to file the FBAR form, which would be one violation, or the failure to report an account on the form, which could be multiple violations based on the number of accounts reports on the FBAR. Section 5321 of Title 31 provides for civil penalties for non-willful FBAR violations. Section 1010.350(a) of Title 31 of the US Code states that every “United States person having a financial interest in, or signature or other authority over, a bank, securities, or other financial account in a foreign country shall report such relationship” on an annual basis. persons to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (“FBAR”) if the aggregate value of such accounts exceeds $10,000 at any time during the tax year. ![]()
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