FBAR Filing for UK Residents: Avoid Penalties, Protect Your Wealth
At Pearl Lemon Accountants, we know exactly what keeps US expats awake at night, fear of the IRS and their ever-tightening grip on foreign account disclosures. If you’re living in the UK and retaining more than $10,000 across your accounts, the IRS demands full transparency through the Foreign Bank Account Report (FBAR). The penalties for even minor mistakes can decimate your finances, so you need experts who understand both UK and US tax law inside and out. We are those experts.
Let’s not sugarcoat this. Compliance isn’t optional. But the good news? You’re in capable hands.
Our Services
We provide a full suite of services designed for expats dealing with complex cross-border compliance. These include:
1. FBAR Compliance Review
We’ll audit all your foreign accounts, including pensions and investment portfolios, to determine your exact reporting requirements.
2. FBAR Preparation & Filing
Our team will prepare your FinCEN Form 114 with exact account details, ensuring accuracy and compliance.
3. IRS Representation
If the IRS questions your filings, we act as your advocate, handling correspondence, audits, and negotiations to minimize penalties.
4. Late FBAR Filing Assistance
Missed the deadline? We can file backdated reports under the simplified Procedure to reduce your risk of enforcement actions.
5. Integration with FATCA Reporting
Our services also cover related obligations, including Form 8938 under the Foreign Account Tax Compliance Act (FATCA).
How to File Your FBAR Correctly
The filing process might sound straightforward, but the smallest oversight can have serious consequences. Here’s a breakdown of how it works:
- Gather Financial Data: Collect statements showing the highest balances for each foreign account during the tax year.
- Complete FinCEN Form 114: Include account details such as names, numbers, balances, and ownership types.
- E-File with FinCEN: The BSA E-Filing system is the official platform for FBAR submissions. Avoid using outdated paper forms.
- Verify Submission: Always retain proof of filing, as the IRS may request supporting documentation during an audit.
We’ll handle the entire process, ensuring that every form is accurate and submitted on time. Our team also liaises with the IRS if clarification is needed, minimizing your exposure to enforcement actions.
FBAR Filing Penalties and How to Avoid Them
Penalties for FBAR non-compliance are severe:
- Non-Willful Violations: Up to $10,000 per violation.
- Willful Violations: The greater of $100,000 or 50% of the highest account balance during the year.
- Criminal Liability: In extreme cases, willful non-compliance can result in imprisonment.
We know how to protect you. Our IRS representation services are designed to reduce or eliminate penalties through compliance programs like the simplified Filing Compliance Procedure. This program can shield non-willful taxpayers from heavy fines.
Why Choose Us
We specialize in helping US expats in the UK stay compliant without the stress of dealing with multiple tax agencies. Our team consists of tax advisors, accountants, and attorneys experienced in both jurisdictions. With our support, you can protect your finances from IRS scrutiny while focusing on your career and family.
Frequently Asked Questions
The IRS can impose penalties of up to 50% of your account balances for willful non-compliance. Non-willful violations still carry fines of $10,000 per account.
Yes, but you’ll need to provide a reasonable cause statement to avoid penalties. We can assist with filing under the simplified Procedure.
Yes, most foreign pension plans, including SIPPs, are reportable under FBAR if their balances exceed $10,000.
FBAR is a separate disclosure filed with FinCEN, while FATCA (Form 8938) is part of your annual IRS tax return. Both may apply depending on your financial holdings.
We consolidate data from all your foreign accounts, including those in multiple jurisdictions, to ensure detailed compliance reporting.
Let’s eliminate your FBAR headaches and keep the IRS off your back. Schedule a consultation today and secure your peace of mind.
