What You Need to Know About Israeli Accounts and the IRS
April 9, 2014
The Jewish Exponent
Types : Bylined Articles
The Internal Revenue Service has turned its attention to U.S. citizens living in and outside of the United States, with foreign financial assets – including in Israel – that have not been reported on their tax returns.
U.S. law requires that taxpayers file a Report of Foreign Bank and Financial Accounts (FBAR) for all foreign financial accounts that exceed $10,000 at any point during the calendar year.
In the eyes of the IRS, failing to file tax returns and an FBAR is not kosher, and penalties can be severe. The ability to fly under the radar screen is over, and anyone who thinks he or she is not likely to get caught should think again. Failure to report foreign accounts can result in financial penalties of up to 50 percent of the account balance for each year of the violation, or worse – potential jail time for tax evasion.
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