A Beverly Hills resident has been indicted on several charges for failing to disclose foreign accounts and then allegedly lying to the IRS Criminal Investigation (CI) unit. The charges faced by Teymour Khoubian include the following:
Some taxpayers are not aware of the requirement that they file a Foreign Bank Account Report (FBAR) if the value of their foreign financial accounts exceeds $10,000 at any time during the year. Even taxpayers who are aware of their obligation to disclose offshore bank accounts may not understand every situation that will trigger an FBAR filing requirement, or the methods for disclosing a previously unreported foreign account.
The following are some of the most common mistakes when filing FBARs:
The IRS expanded its streamlined filing compliance procedures in 2014 to allow more taxpayers with offshore bank accounts to take advantage of the program. The procedures are now available to some taxpayers living in the United States, as well as many U.S. taxpayers living outside the country.
Benefits of Streamlined Filing Compliance Procedures
The main benefit of the streamlined filing compliance procedures is that they allow taxpayers with unreported foreign financial accounts to become compliant with the law without facing severe criminal and civil penalties. Eligible foreign U.S. taxpayers will have all penalties waived, and eligible domestic taxpayers will pay only a miscellaneous offshore penalty of five percent of the balance of the foreign accounts.
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