In an effort to combat a series of international crimes, the U.S. Government has recently enacted a series of laws specifically design to detect the financial assets held outside the U.S. by foreign criminal organizations. Using the powers granted by these new laws, the U.S. Treasury Department and the IRS are imposing stringent reporting requirements to U.S. Citizens, Green Card Holders, business organized under U.S. law and foreign entities conducting business in the U.S. The penalties for not complying with the reporting requirements of these new laws are very severe. Unfortunately, one of the unintended consequences of these new set of laws is imposing to law abiding citizens the obligation of continually having to report to the U.S. Government the nature, value and location of their personal assets held outside the U.S. In other words, as a result of these new laws, almost every U.S. citizen and green card holder living outside the U.S. is now subject to the information filing requirements created by the new legislation. Making the average U.S. Expat very susceptible to fall out of compliance, without even knowing it.

Caribbean CPA is a full-service U.S. public accounting firm; specifically designed to serve the international financial reporting needs of American Expats living in the Dominican Republic. In order to serve our clients better, we have divided our practice around the international financial reporting requirements of a typical U.S. Expat residing in the D.R. Offshore Services are designed to take care of your international financial reporting necessities while making sure you have enough time to run your business and explore all economic opportunities this Caribbean paradise has to offer. Our Offshore Services are divided in the following two main areas:

FATCA Services

FATCA Services are designed to maintain you in compliance with your Statement of Specified Foreign Financial Assets (IRS Form 8938) annual filing requirements. Generally, this requirement applies if you are a U.S. Citizen or Green Card Holder with $50,000.00 or more in foreign financial assets.

If you are a U.S. Citizen or Green Card Holder with $50,000.00 or more in foreign financial assets, you may be required to report these assets in your U.S. Federal Income Tax Return. The definition of a foreign financial asset for these reporting purposes is a complicated one. To make matters worse, the IRS is constantly revising and expanding what qualifies as a foreign financial asset.

The obligation to report these foreign financial assets is completely independent from having a tax filing obligation or a tax liability with the U.S. Federal Government.

Not reporting these foreign assets to the IRS may result in the imposition of monetary fines by the IRS of $10,000 for failure to disclose and an additional $10,000 for each 30 days of non-filing after IRS notice of a failure to disclose, for a potential maximum penalty of $60,000; criminal penalties may also apply.

Please do not let this happen to you; if you have or believe that you have either ownership or a financial interest in a financial asset located outside the U.S., please contact us for a free consultation.

FBAR Services

FBAR Services are designed to maintain you in compliance with your Report of Foreign Bank and Financial Accounts (FinCEN Form 114) annual filing requirements. Generally, this requirement applies if you are a U.S. Citizen or Green Card Holder with ownership or control of $10,000.00 or more in foreign financial assets.

If you are a U.S. Citizen or Green Card Holder who have a financial interest in or signature authority over a foreign financial account(s) with an aggregate value of $10,000.00 or more at any time during the year, you may be required to report this account(s) directly to the U.S. Treasury Department.

Not reporting these foreign accounts to the U.S. Treasury Department may result in the imposition of civil monetary penalties, depending on the nature of non-compliance.

If non-compliance was the result of a non-willful violation, civil penalties can be as high as $10,000.00. However, if non-compliance was the result of a willful violation, civil penalties can be as high as $100,000.00 or 50% of the highest balance of the unreported account(s), whichever is greater; criminal penalties may also apply.

Please do not let this happen to you; if you have or believe that you have either ownership or a financial interest in a financial asset located outside the U.S., please contact us for a free consultation.