The short answer to the FBAR vs. Form 8938 question is that they are two separate filings with different rules, and many taxpayers have to file both. The FBAR (FinCEN Form 114) goes to the Treasury Department and reports foreign financial accounts once they top $10,000 in total. Form 8938 is a FATCA form filed…
Continue reading ›The core FBAR filing requirement is straightforward: a U.S. person who has a financial interest in, or signature authority over, foreign financial accounts must file an FBAR if the combined value of those accounts tops $10,000 at any point during the calendar year. The FBAR is FinCEN Form 114, and it is filed electronically, separately…
Continue reading ›The Form 3520 penalty is one of the harshest in the Internal Revenue Code. A U.S. person who receives a gift or inheritance from a foreign person exceeding the annual reporting thresholds and fails to timely file Form 3520 faces a penalty of up to 25% of the gift or inheritance — even though the…
Continue reading ›By Alex Kugelman, Founder and Managing Attorney, Kugelman Law Not all cryptocurrency audits are the same. Understanding the types of cryptocurrency tax audits the IRS conducts — and what typically triggers each — gives crypto investors, traders, miners, and businesses a meaningful head start in evaluating their exposure and their options. A correspondence audit and…
Continue reading ›Marin County is home to some of California’s highest earners, most successful entrepreneurs, and most sophisticated investors. It’s also a frequent target for IRS and California Franchise Tax Board (FTB) audit activity. If you’ve received an audit notice at your home in Mill Valley, Tiburon, San Rafael, Sausalito, or anywhere else across Marin, you need…
Continue reading ›If you’ve received an audit notice from the IRS or the California Franchise Tax Board (FTB), you’re probably feeling a mix of anxiety, confusion, and maybe even dread. You’re not alone. Every year, thousands of San Francisco residents and business owners open their mailboxes to find that dreaded letter — and most have no idea…
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