Criminal Penalties for Failure to Report Foreign Bank Accounts
You may have seen in the news recently that one of the charges that Paul Manafort pled guilty to was failure to file foreign bank account reports. In today’s global economy, it is increasingly common that individuals who are obligated to file U.S. tax returns also have foreign bank accounts, which must be reported to the IRS. This includes U.S. citizens living abroad and foreign citizens residing in the U.S. with foreign bank accounts. Criminal and civil penalties can be levied solely for failure to file a form that discloses the existence of money on which an individual may not even owe U.S. taxes.