FBAR filings have surged to nearly 400,000 a year, Tejeda said, in part because of increased voluntary compliance with publicity about the government’s interest in the UBS and Lichtenstein cases. “We want taxpayers to come forward voluntarily, first of all,” he said. In most cases, IRS review in Detroit of filed FBARs does not lead to further investigation by compliance employees, he said. “What we’re really concentrating on is those that do not come forward,” Tejeda said. An increasing number of taxpayers are coming forward with information as a result of the IRS’s efforts at “turning the tide around” in international enforcement, he said, because U.S. taxpayers realize the IRS can get that information from many more sources now. [Emphasis added].No guarantees. But coming forward and cleaning things up is the best indicated strategy and gives you the best chance at no penalties or at least reduced penalties. It’s either that or live with stress. Or, I guess, you can run away to Panama. Life’s too short. (That is secret code for “You are going to die someday so don’t be dumb. It’s just money.”)
Tax laws change over time, and the information in this post above may be less accurate today than it was at the time of the last revision. This post is not tax advice for your specific situation. Please contact an international tax professional to get personalized advice for your situation.