International Tax Compliance
& Offshore Disclosure
Advisory on FBAR, FATCA, and U.S. international information reporting obligations — for clients who are current and want to stay that way, and for clients who are not current and need a path forward.
From establishing compliance to resolving it — with discretion, strategy, and a focus on the best available outcome.
International Compliance Is Not Optional — And Coming Into Compliance Requires the Right Approach
U.S. persons with foreign financial accounts, interests in foreign entities, ownership of foreign trusts, or receipt of foreign gifts and inheritances are subject to an extensive annual reporting framework that exists entirely separately from the income tax return. FBAR, Form 8938, Form 5471, Form 8865, Form 8858, Form 8621, Form 3520 — each covers a different category of foreign asset or relationship, carries its own filing threshold and deadline, and its own penalty structure. The penalties are severe: FBAR willful violation penalties can reach the greater of $100,000 or 50% of the account balance per violation, per year. Form 5471 penalties begin at $10,000 per form per year. Form 3520 penalties can reach 35% of the gross value of the assets or transfer involved.
Many clients discover these obligations only after years of non-compliance — often because their domestic accountant was not familiar with the international reporting framework, or because their foreign financial life became more complex over time. FATCA and the OECD Common Reporting Standard now provide automatic account information exchange across more than 100 jurisdictions, making undisclosed foreign accounts and structures increasingly visible to the IRS. The assumption that foreign assets will remain undetected is no longer realistic.
We advise clients across the full compliance continuum — from establishing and maintaining a current, complete reporting position, to identifying and remediating prior gaps through the IRS’s available disclosure pathways. Whether a client is fully current and seeking to stay that way, or has discovered historical non-compliance and needs a path forward, the analysis and strategy are handled with the same discretion and rigor.
A Structured Approach Across the Full Compliance Continuum
From initial compliance review through annual advisory — and from gap identification through remediation and resolution.
Initial Compliance Review
- Comprehensive inventory of foreign accounts, entities, trusts, and assets
- Identification of all applicable forms and thresholds
- Prior-year return review for international reporting gaps
- FBAR history review — account-by-account
- Foreign entity classification analysis
- Penalty exposure assessment and remediation options
Ongoing Annual Advisory
- Annual FBAR and Form 8938 advisory
- Forms 5471, 8865, 8858, 8621, 3520, and 3520-A advisory
- FATCA status determinations and W-8 advisory
- Review of new foreign accounts or entities acquired
- Coordination with foreign counsel and return preparers
Gap Remediation & Disclosure
- Willfulness analysis and disclosure pathway selection
- Streamlined Domestic Offshore Procedures (SDOP)
- Streamlined Foreign Offshore Procedures (SFOP)
- IRS Voluntary Disclosure Program (VDP) for willful cases
- Delinquent FBAR and information return procedures
- Reasonable cause penalty abatement strategy
Who We Advise
We advise U.S. persons at every point on the compliance spectrum — from those who are fully current to those who have discovered multi-year gaps and need a resolution strategy.
Internationally Mobile Individuals & Families
U.S. citizens and residents with foreign bank accounts, investment portfolios, or assets abroad — requiring annual FBAR and Form 8938 advisory and ongoing compliance review as their foreign financial footprint evolves.
U.S. Persons Discovering Historical Non-Compliance
Individuals who have recently learned of their FBAR and international reporting obligations and have years of unfiled forms — requiring willfulness analysis, disclosure pathway selection, and coordinated remediation.
U.S. Persons with Foreign Business Interests
U.S. shareholders of foreign corporations (Form 5471), partners in foreign partnerships (Form 8865), and owners of foreign disregarded entities (Form 8858) — requiring entity classification analysis and annual information return advisory.
U.S. Persons with PFIC Holdings
U.S. persons holding foreign mutual funds, ETFs, and other passive foreign investment companies — requiring Form 8621 advisory, election analysis, and ongoing PFIC compliance strategy.
U.S. Persons with Foreign Trust Connections
U.S. grantors and beneficiaries of foreign trusts — requiring Forms 3520 and 3520-A advisory, distribution analysis, and coordination with foreign trustees.
Long-Term Green Card Holders & Expatriation Clients
Individuals preparing for green card abandonment or citizenship renunciation who must achieve five-year compliance certification — requiring compliance gap identification, remediation sequencing, and coordination with the expatriation planning process.
Form-by-Form Advisory and Full Disclosure Pathway Coverage
Technical depth across every major international reporting form and every IRS disclosure program.
FBAR & Form 8938
Annual advisory on FinCEN Form 114 and Form 8938 (FATCA) — including account and asset identification, threshold analysis, overlap and distinction between the two regimes, and multi-year gap remediation.
Forms 5471, 8865 & 8858
Advisory on annual information returns for foreign corporations, partnerships, and disregarded entities — including category of filer analysis, entity classification under the check-the-box regulations, and CFC/NCTI schedule advisory.
Form 8621 — PFICs
Advisory on annual PFIC reporting — including PFIC identification, QEF and mark-to-market election analysis, excess distribution calculations, and ongoing compliance strategy.
Forms 3520 & 3520-A — Foreign Trusts
Advisory on annual reporting for U.S. grantors and beneficiaries of foreign trusts — including grantor vs. non-grantor trust analysis, distribution reporting, and coordination with foreign trustees.
Streamlined Procedures (SDOP & SFOP)
Advisory on and coordination of the IRS Streamlined Domestic and Foreign Offshore Procedures for non-willful taxpayers — including non-willfulness narrative preparation, amended return advisory, and FBAR submission coordination.
IRS Voluntary Disclosure Program
Advisory on the IRS Criminal Investigation Voluntary Disclosure Program for willful taxpayers — including willfulness analysis, disclosure submission strategy, and coordination with criminal defense counsel where appropriate.
Delinquent Filing Procedures
Advisory on the Delinquent FBAR Submission Procedures and Delinquent International Information Return Submission Procedures — for taxpayers with specific filing gaps who do not need the full Streamlined framework.
Reasonable Cause & Penalty Abatement
Preparation of reasonable cause statements for penalty abatement requests — documenting the factual and legal basis for relief from FBAR, Form 5471, Form 3520, and other international information return penalties.
Representative Matters
Select anonymized engagements. Prior results do not guarantee a similar outcome.
INTERNATIONAL COMPLIANCE / MULTI-JURISDICTIONAL STRUCTURE
United States / Panama / Singapore / BVI / Cayman Islands
Advising an ultra-high-net-worth non-resident individual on FBAR and international information return compliance across a multi-tiered holding structure with entities in the United States, Panama, Singapore, the BVI, and the Cayman Islands — including entity classification analysis and identification of applicable international information reporting forms across the structure.
COMPLIANCE REMEDIATION / STREAMLINED PROCEDURES
United States / Europe
Advised a married couple with multi-year FBAR filing gaps and unreported foreign accounts — conducting a comprehensive account-by-account review across multiple foreign jurisdictions, selecting the Streamlined Filing pathway, and coordinating preparation of the client questionnaire, FBAR worksheets, non-willfulness narrative, and amended returns.
COMPLIANCE REMEDIATION / GREEN CARD ABANDONMENT
United States / Europe
Advised a long-term green card holder with unreported foreign income and unfiled FBARs on compliance remediation as a prerequisite to green card abandonment — analyzing the willfulness question, selecting the appropriate Streamlined pathway, and sequencing the compliance and abandonment process to achieve the five-year certification required for Form 8854.
INTERNATIONAL COMPLIANCE / U.S. CITIZEN ABROAD
United States / Belgium
Advised a U.S. citizen residing in Belgium on FBAR and Form 8938 obligations for foreign financial accounts — analyzing the threshold and overlap between the two regimes, identifying prior-year gaps, and coordinating with a Belgian tax advisor on the dual-filing compliance strategy.
INTERNATIONAL COMPLIANCE / MULTI-YEAR RETURN REVIEW
United States / Latin America
Conducted a multi-year U.S. federal tax return review for a U.S. person with cross-border financial interests — identifying missed international information reporting obligations across multiple years, analyzing penalty exposure, and coordinating remediation with the client’s return preparer.
Frequently Asked Questions
What is the difference between the FBAR and Form 8938?
Both require U.S. persons to report foreign financial accounts and assets — but they are different forms filed with different agencies, covering different assets, with different thresholds. The FBAR (FinCEN Form 114) is filed with FinCEN — not the IRS — and covers foreign financial accounts with an aggregate balance exceeding $10,000 at any point during the year. Form 8938 is filed with the IRS as part of your tax return and covers a broader category of ‘specified foreign financial assets,’ including foreign financial accounts but also foreign stock, partnership interests, and other instruments, with higher thresholds that vary by filing status and residency. Both may apply to the same assets simultaneously and neither substitutes for the other.
What is Form 5471 and who needs to file it?
Form 5471 is an information return for U.S. persons with certain ownership interests in foreign corporations. The filing obligation depends on the ‘category of filer’ — there are five categories based on ownership percentage, officer/director status, and CFC relationship. The most significant category applies to U.S. shareholders of controlled foreign corporations, requiring schedules covering the CFC’s income, balance sheet, Subpart F inclusions, and NCTI calculations. Penalties for failure to file begin at $10,000 per form per year. Critically, the U.S. tax classification of the foreign entity must be determined first — a foreign entity that is a disregarded entity or partnership for U.S. purposes requires a different form entirely.
I have never filed FBARs for my foreign accounts. What are my options?
The right pathway depends primarily on whether the non-compliance was willful or non-willful — a determination requiring careful factual analysis before any program is selected. For non-willful taxpayers, the Streamlined Foreign Offshore Procedures (SFOP) offer a zero-penalty pathway for taxpayers residing outside the U.S., and the Streamlined Domestic Offshore Procedures (SDOP) offer a 5% miscellaneous offshore penalty for U.S.-resident taxpayers. For willful taxpayers, the IRS Voluntary Disclosure Program (VDP) substantially reduces criminal and civil exposure. Selecting the wrong program — particularly electing Streamlined when the facts support willfulness — can create serious exposure. The analysis must be done carefully before any submission is made.
What is the difference between willful and non-willful FBAR violations?
The distinction is critical — it determines which disclosure program is available and the magnitude of potential penalties. A willful violation is one where the taxpayer was aware of the FBAR requirement and consciously chose not to comply, or acted in reckless disregard of the obligation. A non-willful violation results from negligence, inadvertence, or mistake. The IRS and courts look at the totality of facts — including whether the taxpayer checked ‘no’ on Schedule B regarding foreign accounts, whether they sought tax advice, the size and number of accounts, and whether income from the accounts was reported. The willfulness determination is a factual and legal analysis that must be made before a disclosure pathway is selected.
Can I just file the missing forms without going through a disclosure program?
In some cases, yes — the Delinquent FBAR Submission Procedures and Delinquent International Information Return Submission Procedures are available for taxpayers with specific filing gaps who have otherwise reported all income. However, simply filing late forms without the protection of a disclosure program can leave the taxpayer exposed to penalties without the benefit of Streamlined or VDP protections. Whether a protective submission is warranted should always be evaluated by counsel before any filing is made.
My accountant has never asked about my foreign accounts. Should I be concerned?
Possibly yes. International information returns are a specialized area that many domestic accountants are not familiar with. These obligations are not automatically captured by standard tax software, and the relevant facts are not always asked for in a standard tax organizer. If you have foreign bank accounts, investments, business interests, or trust connections and have not been specifically asked about them in the context of FBAR, Form 8938, or international information returns, a compliance review is warranted. FATCA and CRS now provide automatic information exchange across more than 100 jurisdictions — undisclosed foreign accounts are increasingly visible, and the time to come into compliance voluntarily is before the IRS makes contact.
International Tax Compliance Checklist
A practical guide for U.S. persons with foreign accounts, entities, trusts, and investments — covering every major international information reporting obligation, the applicable threshold and deadline, the penalty for non-compliance, and the remediation pathway if you have fallen behind.
This checklist is provided for informational purposes only and does not constitute legal advice. No attorney-client relationship is formed by use of this resource. Every client’s situation is unique — this checklist does not substitute for a comprehensive analysis by qualified counsel. All engagements are subject to a conflicts check and execution of an engagement letter.