Video instructions and help with filling out and completing When Form 2220 Filing

Instructions and Help about When Form 2220 Filing

Filing an f bar can be annoying and a necessary breach of privacy and believe it or not what are more complicated than a one would at first imagine so the question becomes do you really have to file an f bar can you get away without filing an f bar can you cheat the IRS by not filing an f bar watch this video and we'll give you some insight hi i'm anthony parent of parent & parent LLP IRS medic and i'm here to talk about what happens when you don't file an f bar and if you can get away without doing it and before you laugh there was actually a time when you could get away without filing an f waar and have zero consequences and it's important to understand the history behind it and then it kind of makes sense the f bar filing requirement began with the Bank Secrecy Act of 1970 yet for decades nobody really filed an F bar or if you did the the importance of it was never really seen the reason why was because F bars weren't enforced why well because the f bar is not an IRS form it's a financial crimes enforcement network form FinCEN fraud for sure FinCEN was in charge of administering f bar penalties well they didn't look at f bars as enough of a issue to bother administering him so no one ever really did anything that changed is the IRS the authority of this sf bar penalties switched to the IRS and now the IRS looks at the f bar penalties as a way to penalize people for tax non-compliance as well so in the last 10 years it's all changed f bar penalties went from something the IRS didn't even care about did even do to now a key IRS focus and it's something it's agents are quite happy to impose now what exactly is an f bar the f bar is a report of foreign bank accounts it's also known as FinCEN form one 1/4 person or entity is required to file an F bar if they have a financial interest in or signatory authority over at least one type of foreign financial account that exceeds an aggregate value of 10,000 at any time during year remember how I told you was a little more complicated than most people realize because the forum says report a foreign bank account right but the instructions say a financial account so that's why there's a lot of things that aren't foreign bank accounts that still have to go on an f bar according to the government pensions life insurance policies and accounts are earn no money have to be reported or else so is it still possible to file no f bar and get away with it it might be it might be but before you make that decision to sort of not do it here are some things I want you to think about and to see how you fit in to where this fits into if this helps you make the proper decision the first thing is if you ever did file an f bar you are now in the FinCEN database so once you're in a debate database you can be tracked if you're not in a database it's really hard to track you right the second thing to think about is you know what the penalties truly are okay because there's a lot of fear out there of where people will say oh my god it's a 50% penalty that it can be assessed multiple times that will completely ruin you and it seems really scary yes 50% penalties do happen but that's where you see it counts over a million dollars for the accounts that go under $250,000 even if you're found willful which is the worst sort of standard the penalty will be about ten thousand dollars still outrageous in my mind but it's not the ruinous amount and there's ways that we deal with reducing you know reducing those willful penalties at least mitigating through some other way or trying to argue for a non-willful which is a maximum of a ten thousand dollars per year now the other issue because and this has recently been in the news with the Paul Manafort case he actually was accused not filing an f bar now if the only crime you're accused of committing is not finally an f bar wilfully that's a $250,000 penalty in up to five years in prison for not filing a form I know right pretty crazy and of course they're not they're not imposing these penalties against the original target of the Bank Secrecy Act of 1970 which were your international drug kingpins it's in organized crime no no no they're putting against taxpayers and I guess political consultants like mr. mana for well this is the thing that happens if the f bar violation occurs with another crime now the penalties are doubled to $500,000 and up to 10 years in prison so the thing is you will never see I've never seen a naked f bar crime it's always involving a tax evasion crime - so you're virtually assured if it is something that those does go criminal that you'll probably be facing that that daunting $500,000 penalty in ten years of imprisonment and it's pretty hard to keep your cool no matter how innocent you are or whatever mistake the IRS did make when you're looking at that and that's one of the reasons why 92% of people when faced with a indictment involving the IRS will plead guilty the IRS does some other things too they'll you know maybe they'll indict your spouse to to put some added pressure on to you in order to take a really really unhelpful plea deal now here's something else to think about people who have grievances against you are more