Reporting foreign bank account information.
This form is required to be filed by U.S. citizens and residents who have a financial interest in or signature or other authority over any financial accounts (including bank, securities or other types of financial accounts in a foreign country), if the aggregate value of such accounts exceeded $10,000 during 2002.
In recent testimony, Treasury clarified that addressing the lack of disclosure of foreign financial accounts has become a priority The IRS's Offshore Voluntary Compliance Initiative allows partial amnesty until April 15, 2003 (see Tax Practice & Procedures, "Amnesty for OffShore Tax Evaders," p. 226, this issue.) Congress is likely to add new, easier-to-impose penalties this year for not filing Form TD F 90-22.1.
Treasury can impose on any person who willfully violates this reporting requirement a civil penalty, in the amount of the transaction or the value of the account, up to a $100,000 maximum (the minimum penalty is $25,000). In addition, any person who willfully violates this reporting requirement is subject to a criminal penalty--a fine of not more than $250,000 or imprisonment for up to five years, or both; if the violation is part of a pattern of illegal activity, the maximum fine increases to $500,000 and the maximum length of imprisonment increases to 10 years.
|Printer friendly Cite/link Email Feedback|
|Publication:||The Tax Adviser|
|Date:||Apr 1, 2003|
|Previous Article:||AICPA comments on simplifying employer-provided retirement plan rules.|
|Next Article:||Merger of target into acquiring corporation's SMLLC is an A reorganization. (Corporations & Shareholders).|