Under the U.S. tax statutes, individuals with a financial interest in or signature authority over a foreign financial account (such as a bank account, brokerage account, mutual fund, or trust) are required to file an annual report with the Internal Revenue Service (IRS) using Form TD F 90-22.1, also known as the Report of Foreign Bank and Financial Accounts (FBAR). Failure to file the FBAR can result in substantial civil penalties, reaching as high as $100,000 or 50 percent of the account balance per violation each year.

Types of financial accounts reportable on FBAR include:

• Bank accounts (savings, current, fixed deposit, etc.)
• Securities or brokerage accounts
• Accounts with entities acting as brokers or dealers for futures or options transactions
• Accounts with entities accepting deposits as financial agencies
• Insurance or annuity policies with cash value (e.g., LIC, ULIP)
• Public Provident Fund (PPF) or PF accounts
• Shares in mutual funds or similar pooled funds
• Gold stored in bank lockers

FinTaxPal not only provides comprehensive insights into the applicable tax code for U.S. resident individuals, including Green Card Holders and U.S. Citizens but also offers a range of services, including:

• Consultation and Impact Analysis
• Analysis and planning to minimize FBAR penalties
• Alternative Minimum Tax (AMT) strategies and foreign tax credit assistance
• Review of 2009 and 2010 Offshore Voluntary Disclosure Program (OVDP) cases
• Mutual fund or Passive Foreign Investment Company (PFIC) computations
• Preparation of necessary forms for participation in the OVDP program
• Preparation of tax amendments and delinquent FBAR filings
• IRS representation by enrolled agents or affiliated CPAs and attorneys.