A lot of people have foreign income and assets such as foreign bank accounts. Some people have accounts from living in previous countries, some people unknowingly inherit them and some people accidentally gain them through marriage.
Bay Area Tax Attorney Steve Moskowitz explains what you need to know on the topic.
You are required to report foreign bank accounts to the Internal Revenue Service and the Financial Crimes Enforcement Network. Failing to do so could result in five years federal prison and fines that begin at $100,000 per account, per year, per signature, up to six years… you get the picture.
According to Moskowitz, if you haven’t complied with the law – knowingly or unknowingly – it is imperative you seek out a tax attorney as soon as possible and resolve the problem before the government takes action.