Segal, Cohen & Landis, P.C.
FBAR Compliance, Late Filing, and Penalty Defense
IRS tax attorneys — Beverly Hills, CA. National representation.
The Foreign Bank Account Report (FBAR) — FinCEN Form 114 — is an annual report required of every US person who has a financial interest in or signature authority over foreign financial accounts exceeding $10,000 in aggregate at any point during the year. Missing this filing carries some of the most severe civil penalties in tax law: up to $10,000 (adjusted annually for inflation) per annual report, not per account, for non-willful reporting violations. For willful violations, the maximum can be the greater of $100,000 (adjusted for inflation) or 50% of the account balance at the time of the violation. Reasonable-cause relief and other limits may apply depending on the facts.
FBAR penalties can accumulate faster than the underlying account balances. The IRS has collected billions of dollars in FBAR penalties — and prosecuted hundreds of taxpayers criminally.
How We Help
Our Approach to FBAR Attorney
Delinquent FBAR Filing
If you have foreign financial accounts and have missed years, you may be able to catch up through the IRS Delinquent FBAR Submission Procedures (if no unreported income was associated with the accounts) or through the Streamlined Filing Compliance Procedures.
FBAR Penalty Defense and Abatement
If the IRS has assessed FBAR penalties, we challenge the penalty computation, argue for non-willful treatment, and present reasonable cause arguments. FBAR penalty assessments are appealable to federal district court.
FBAR Audit Representation
IRS FBAR examinations are conducted by international examiners with specialized training. We represent clients from the initial information request through the penalty determination.
Ongoing FBAR Compliance
We file annual FBARs for clients with foreign accounts, review reportable accounts to ensure all accounts are captured, and advise on accounts clients may not recognize as reportable.
How It Works
The Resolution Process
Foreign Account Inventory
We identify all foreign financial accounts — bank accounts, brokerage accounts, foreign pension and retirement plans, foreign life insurance — that may require FBAR disclosure.
Disclosure Path Assessment
We determine the appropriate path: current-year compliance, Streamlined procedures, Delinquent FBAR procedures, or formal voluntary disclosure.
FBAR Preparation and Filing
We prepare and file FinCEN Form 114 electronically through the BSA E-Filing System for all required accounts and years.
Penalty Abatement (if applicable)
If penalties have been assessed or proposed, we prepare a penalty abatement request presenting the factual and legal case for reduction.
Ready to Resolve Your Tax Problem?
Our attorneys have helped thousands of clients resolve IRS matters. Your consultation is free and confidential.
Common Questions
Frequently Asked Questions
Who must file an FBAR?+
US persons — citizens, Green Card holders, and residents — who have a financial interest in or signature authority over foreign financial accounts with an aggregate value exceeding $10,000 at any point during the calendar year.
What is the FBAR filing deadline?+
April 15 of the year following the calendar year being reported. An automatic extension to October 15 is available. No extension request is required.
What is the difference between willful and non-willful FBAR violations?+
Under Bittner, non-willful FBAR reporting penalties apply per annual report, not per account. The statutory maximum of $10,000 is adjusted annually for inflation. Willful violations can carry a maximum penalty of the greater of $100,000 (adjusted for inflation) or 50% of the account balance at the time of the violation. Reasonable-cause relief and other limits depend on the facts; criminal exposure is a separate question.
Further reading
Beverly Hills · Los Angeles · National
Segal, Cohen & Landis, P.C.
9100 Wilshire Boulevard, 601 East Tower, Beverly Hills, CA 90212
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