Foreign bank accounts and assets are increasingly common in today’s world. Such accounts may be legally opened and used by persons who live, work, conduct business, own real estate, study or play abroad (not just alleged “tax cheats”). However, law imposes a number of reporting requirements (some new and some old) on persons who have an interest in or authority over such accounts as well as significant criminal and/or civil penalties for noncompliance. The Internal Revenue Service (IRS) continues to make compliance with those reporting requirements a high priority enforcement item and, within the next two years, expects to receive information directly from foreign financial institutions on accounts owned by persons. The information provided by those institutions will be cross-checked with IRS records to determine whether the accounts were properly reported. This article identifies two of those reporting requirements and explains how noncompliance can be corrected. To view the full article, click here.