Miami IRS Tax Attorney: International Tax, FBAR, and Federal Tax Debt in South Florida

Miami taxpayers with connections to Latin America, the Caribbean, Europe or other regions may face international tax questions involving foreign financial accounts, trusts and gifts. Whether an account or transaction creates a U.S. filing obligation depends on the taxpayer’s status, the applicable thresholds and exceptions, and the facts.

This guide explains foreign financial account reporting, FBAR penalties, Form 3520, IRS audits and federal tax debt issues that may affect Miami-area taxpayers. To discuss representation with Segal, Cohen & Landis, P.C. (SCL), confirm the firm’s availability, relevant experience, fees and scope of services directly.

Federal Tax Issues Relevant to Miami

Taxpayers in Miami should consider these potential federal tax issues:

• Latin American and Caribbean financial connections: Accounts in Venezuela, Colombia, Brazil, Argentina, Mexico or elsewhere in the Caribbean may require FBAR reporting by a U.S. person. The rules can apply to personal accounts and accounts held through business structures, depending on financial interest or authority, aggregate value and applicable exceptions.
• Real estate transactions with international capital: Disposition of U.S. real property interests by foreign sellers generally triggers FIRPTA withholding, subject to exceptions. A foreign buyer does not by itself make a U.S. seller subject to FIRPTA withholding. A purchase payment is distinct from a foreign gift.
• No Florida individual income tax — but federal obligations remain: Florida does not impose an individual income tax. Federal income tax, IRS audits, FBAR, FATCA and federal tax debt rules remain separate and apply when their requirements are met. Florida corporate and other state taxes may also apply.
• Self-employed and cash-intensive businesses: Hospitality, tourism, entertainment and service businesses must accurately report taxable income, including cash receipts, and retain supporting records. Cash transactions alone do not establish a violation or mean that an audit is inevitable.

FBAR and Foreign Account Issues for Miami Taxpayers

A U.S. person generally must file an FBAR if they have a financial interest in or signature or other authority over foreign financial accounts whose aggregate value exceeds $10,000 at any time during the calendar year, unless an exception applies.

Foreign accounts that may require review under the FBAR rules include:

• Accounts in Colombia, Venezuela, Brazil, or other Latin American countries held for family, business, or investment purposes
• Accounts in offshore banking jurisdictions (the Cayman Islands, Bahamas, Panama, Switzerland) used for asset protection or tax planning
• Joint accounts with a foreign spouse or family member where the US person has signatory authority
• Foreign brokerage accounts holding stocks, bonds, or other financial instruments
• Foreign retirement or pension accounts (these may also require FATCA Form 8938 reporting)

Penalties can be significant: Under Bittner, nonwillful FBAR reporting penalties are measured per report, not per account. Statutory dollar maximums are inflation-adjusted. Willful violations follow different penalty rules, and criminal prosecution is possible for willful violations. The facts and any applicable reasonable-cause exception matter.

Form 3520 — Foreign Gifts and Trusts

U.S. persons may need Form 3520 for specified foreign-trust transactions or ownership and qualifying large gifts or bequests. Donor residency, transaction type, thresholds and exceptions determine the requirement.

• A U.S. person generally reports gifts from a nonresident alien individual when the aggregate received during the tax year exceeds $100,000; related-party aggregation and exceptions apply.
• A U.S. person generally reports bequests from a foreign estate when the applicable aggregate exceeds $100,000 during the tax year; related-party aggregation and exceptions apply.
• A U.S. person generally reports foreign-trust distributions, specified loans or use of trust property, ownership and reportable transfers under the Form 3520 instructions; exceptions apply.
• A U.S. person’s transfer to a foreign trust may trigger reporting; review the reportable-event rules and exceptions in the Form 3520 instructions.

Foreign-gift reporting penalties generally accrue at 5% of the unreported gift amount per month, up to 25%, subject to reasonable-cause relief. Foreign-trust reporting has separate penalties, generally starting at the greater of $10,000 or the applicable percentage; exceptions and additional penalties may apply. Calling a transfer from a foreign family member a “loan” does not control its tax treatment: if the facts establish a reportable gift, Form 3520 may be required.

IRS Voluntary Disclosure for Miami Taxpayers

Before filing, evaluate the applicable compliance options. VDP addresses eligible willful noncompliance and generally uses a six-year disclosure period; streamlined and other delinquent-filing options have different requirements. No procedure guarantees immunity from criminal prosecution. Apply the procedures currently in effect, rather than assuming that proposed changes are final.

• IRS Voluntary Disclosure Practice (VDP): Eligible taxpayers with willful noncompliance must make a truthful, timely and complete disclosure, cooperate and arrange payment of tax, interest and applicable penalties. The disclosure period is generally 6 years, subject to the governing procedures and facts. Timeliness requires disclosure before an IRS examination or investigation and before specified IRS receipt of information about the noncompliance. Illegal-source income is ineligible, and participation does not guarantee immunity from prosecution.
• Streamlined Filing Compliance Procedures: Eligible nonwillful individual taxpayers using domestic procedures generally pay 5% of the highest aggregate year-end balance or value of assets in the penalty base. Domestic procedures generally require previously filed returns for the covered 3 years. Foreign procedures require the applicable nonresidency test and other conditions: citizens or green-card holders must have no U.S. abode and be outside the United States for at least 330 full days in one of the relevant 3 years; other individuals apply the substantial-presence test. Both spouses must meet the foreign-procedure nonresidency test for a joint submission. Review the covered 3 tax-return years and 6 FBAR years and all certification, tax and interest requirements.

A taxpayer under an IRS civil examination for any year is ineligible for streamlined procedures, even if the examination does not relate to undisclosed foreign assets; criminal investigations also disqualify. Any contact requires case-specific eligibility review. Learn more about IRS voluntary disclosure programs here.

IRS Tax Debt and Collections in Miami

Florida does not impose an individual income tax, but federal collection powers remain. Separate Florida taxes may apply to businesses and transactions.

Potential IRS collection measures, subject to applicable notices, procedures and exemptions, include:

• Federal tax liens potentially affecting real estate transactions and refinancing; discharge or subordination may be available
• Bank levies on accounts at Miami-area banks, credit unions, and investment firms
• Wage levies on income from Miami employers, subject to the applicable exempt amount and other limitations
• Passport denial or revocation after certification of qualifying “seriously delinquent” federal tax debt under the FAST Act; the threshold is more than $66,000 in 2026, and additional conditions and exclusions apply

See our Miami IRS tax attorney page for additional information and confirm representation details directly with the firm.

Frequently Asked Questions — Miami IRS Tax Attorney

I received money from my family in Colombia — do I need to report it?

For a U.S. recipient, gifts and bequests exceeding $100,000 from a nonresident alien individual or foreign estate generally require Form 3520; related-party aggregation applies. Gifts from foreign corporations or partnerships have a different inflation-adjusted threshold. U.S. citizenship alone does not define every donor’s tax status. File Form 3520 separately from the income-tax return.

My bank account is in Venezuela and I never filed an FBAR — what should I do?

Penalty exposure depends on the facts, willfulness, reasonable cause and applicable inflation-adjusted limits. Nonwillful penalties are assessed per report under Bittner; willful violations follow different rules. Obtain advice on accurate disclosure and applicable procedures.

Does Florida having no state income tax reduce my IRS exposure?

Florida has no individual income tax. Federal income, self-employment, payroll and international reporting requirements apply when the taxpayer meets the relevant rules; Florida corporate and other taxes may also apply.

What is the IRS passport restriction rule and how does it affect Miami residents?

Under the FAST Act, qualifying assessed, legally enforceable unpaid federal tax debt above $66,000 in 2026, including penalties and interest, can be certified to the State Department after the required lien-and-appeal conditions or a levy. The State Department may deny a passport application or revoke a passport, affecting international travel. Exclusions include debts timely paid under an approved installment agreement or accepted OIC; IRS policy also excludes specified pending requests and hardship cases. Filing an application alone does not guarantee reversal of an existing certification. Learn more about IRS passport restrictions here.