Foreign Bank Account Representation
The U.S. Justice Department and IRS keep a very close eye on Offshore Banking. Offshore bank accounts and offshore income require special reporting. Owning an offshore account is legal as long as U.S. income taxpayers declare and report offshore bank accounts and income with their tax returns. The Foreign Bank Account Report (“FBAR”) is used to report a financial interest in, or authority over, offshore accounts. The willful failure to disclose offshore accounts, or to report all of the information required on an FBAR, can result in severe civil and criminal penalties.