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Can you share the worst fbar horror stories you've heard?

2024-11-14 01:24
2024-11-14 02:00

One of the worst I've heard was a family who had been living abroad for years and had multiple bank accounts in different countries. They were completely unaware of the fbar requirements. When they finally got notified, they faced huge fines that nearly bankrupted them. They had to sell some of their assets just to pay the penalties.

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There was a case where a business owner had an employee handling their financial reporting. The employee misinterpreted the fbar rules and under - reported a significant amount of overseas income. The business owner was held responsible. It not only cost them a large sum in fines but also damaged their reputation. They lost some clients who were worried about the company's financial integrity due to the fbar issue.

I heard about an individual who received an inheritance in a foreign bank account. They didn't know they had to report it on the fbar. By the time the IRS caught up with them, the penalties had accumulated to an exorbitant amount. They had to hire expensive lawyers to try and negotiate a reduced penalty, but it was still a very difficult and costly process for them.

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