If you live in Los Angeles and have money in foreign bank accounts, there is something important you need to know about FBAR, or the Foreign Bank Account Report. Ignoring it can get you into serious trouble with the IRS, so it’s worth understanding the rules, especially the statute of limitations.
FBAR stands for Foreign Bank Account Report, and it is officially called FinCEN Form 114. If you are a U.S. citizen or resident (including people in LA) and you have over $10,000 total in foreign bank accounts at any point during the year, you are supposed to report it.
It does not matter if it is one account or five; if the total goes over $10,000, you are required to file. And no, this is not done through the IRS. You have to file it online through the Financial Crimes Enforcement Network. If you fail to do so, you could be looking at steep IRS penalties, you can learn more about them in our IRS civil penalty guide.
The deadline is usually April 15, but good news: you automatically get an extension to October 15 if you miss it. No need to ask for it. It is automatic. Just make sure you file before that October deadline.
The statute of limitations is just a fancy term for the amount of time the government has to hit you with a penalty if you did not file your FBAR.
If you did not know you were supposed to file and it was an honest mistake, it is called a non-willful violation. In these cases, the IRS has three years from the filing deadline to fine you.
If you knew about the rule and decided to ignore it, that’s a willful violation. For those, the IRS gets six years to come after you.
The clock starts ticking from the due date, not the actual filing date. So even if you filed it late, the statute of limitations still starts on the original deadline.
Even though federal tax rules apply the same everywhere, LA folks might have unique situations. With a large international business scene and a lot of residents with ties abroad, the IRS may keep a closer eye on people in the area who have foreign financial accounts.
Also, some state-level issues might affect your overall tax situation, so having a local tax pro can really help. If your FBAR issues are linked to other tax concerns, you may want to look at our Los Angeles tax relief services to see how we can help resolve them.
You could get fined up to $10,000 per violation. The IRS might cut you a break if you can show it was a genuine mistake and you had a good reason for missing it.
Now this is where it gets painful. The penalty is the greater of $100,000 or 50% of the account balance, yes, per account. And that’s not even counting the possibility of criminal charges. People have gone to jail for hiding foreign accounts. If you’re unsure where you stand, our tax settlement services can help you negotiate and find a resolution.
If you have got foreign accounts and live in Los Angeles, here are some tips to keep the IRS off your back:
Simple but important. Use the BSA E-Filing System and get your FBAR in by April 15 or October 15 if you use the extension.
If you forgot to file in past years, the Voluntary Disclosure Program could help. It is the IRS’s way of letting you come clean without getting hit with massive penalties. This option is especially helpful for people who genuinely did not know they had to file.
If you are even a little confused about your filing requirements, talk to someone who knows the ins and outs especially someone in LA who understands the local and international tax scene. Here you get professional help from Los Angeles renowned firm USA Tax Settlement.
Normally, the IRS has three years to audit your regular tax return. But if you did not file your FBAR or left out key foreign account info, the IRS could go beyond that window, especially for willful violations. They are allowed to dig deeper if they suspect you were hiding something. For a broader look at time limits, check our statute of limitations on taxes guide.
Here are some of the most common ways people get into trouble:
If you’re living in Los Angeles and have foreign bank accounts, take FBAR seriously. Know the rules, understand the deadlines, and avoid the massive penalties that come with non-compliance.
The sooner you deal with any issues, the better off you’ll be. And if you are not sure where you stand, talk to our expert who knows FBAR rules and can guide you in the right direction.
Contact Details
Business Hours
2026 USA Tax Settlement. All Rights Reserved. Powered By GOGETSOL SEO Agency
