Because the United States operates under a global taxation system, individuals who are required to report accounts, assets, or properties to U.S. authorities include: U.S. citizens, U.S. tax residents, foreigners holding U.S. assets, and U.S. citizens/tax residents holding foreign assets. Reporting of foreign accounts, assets, equity holdings, or other forms of ownership is primarily for informational disclosure to the IRS and does not necessarily result in tax liability. However, failure to report or underreporting foreign accounts and assets may result in substantial penalties, and in severe cases, even criminal charges. In recent years, the IRS has collaborated with financial institutions in many countries to obtain information for tax verification purposes. Taxpayers must take foreign account and asset reporting seriously.

Junheng has extensive experience in foreign account and asset reporting. We thoroughly understand our clients’ asset structures, categorize and assess asset details, and provide accurate and compliant solutions. Our services for foreign account/asset reporting include: filing FinCEN Form 114 (FBAR) for overseas financial/bank accounts, FATCA foreign financial asset reporting, foreign gift reporting, foreign shareholding disclosure, and foreign tax credit reporting. For more information about these services, please contact Junheng for further consultation.

 

Notice: New Regulation in 2024 – Corporate Transparency Act

This regulation mandates that companies registered before 2024 must disclose their beneficial owners (individuals holding more than 25% ownership) to the U.S. Department of the Treasury. This reporting must be completed by December 31, 2024.

Penalties for Noncompliance:

1. Companies that willfully fail to comply will be subject to a civil penalty of up to $500 per day after the reporting deadline and may face up to 2 years of imprisonment.

2. Required information for the disclosure includes the shareholder’s personal ID (driver’s license or passport), residential address, and email address.

For detailed information, please refer to: https://www.fincen.gov

3. For our corporate clients, we are already notifying and preparing reports one by one. If you haven’t heard from us yet, it’s likely because your turn hasn’t come up—we aim to complete all filings by mid-December. Alternatively, feel free to contact us directly to schedule an earlier filing. Thank you!