The economic and political scenario across the world demands governments to implement strict regulations to curb ways and means of any harmful acts. The international expansion of business along with the many opportunities placed before the enterprises venturing across borders has today provoked them to the fundamental requirement of creating their offshore banking account. On the long run this helps the governments to take guard against terrorism and money laundering issues across borders.

Theforeign bank accountthus becomes an important aspect of every global enterprise not just because it would help them build up saving in countries outside their operational zone but also help them avoid the risks in case of government freezing or confiscating their accounts and assets due to any mishaps. Such diversification of their assets helps enterprises not just with higher interest rates but also open multiple accounts. Nevertheless, with governments passing strict regulations on account disclosures through Foreign Bank and Financial Account Report, every individual of the United States is liable to punishments if not adhered to.

The FBARis a form that IRS requires a US resident, to file if the aggregate value of the foreign accounts exceeds US$10, 000 at any time during the calendar year so as to comply with the requirements of reporting Foreign Bank and Financial Accounts to the United States tax authorities. Further, as these foreign bank accounts pave way to diversify and dilute their savings disclosures, enterprises and individuals in an attempt to evade from taxes tend to push in the maximum amount into managing these accounts and avoid reporting these foreign accounts. However, such risks of misusing accounts can lead to high penalties so as to even subjecting an individual to 27.5 percent offshore penalty in relation to other penalties comprising civil and criminal penalties.

With tax evasion being definitely considered a crime, enterprises and individuals can avoid the penalties attached to it by taking help fromtax planningconsultants. The tax codes differing for the residents of United States, US citizens and Green card holders, the leading tax planning consultants with their expertise can help the enterprises to plan their taxes in full compliance with the tax regulations prevalent in the country. Such expert advice will further help them in planning and analysis to minimizingFBARpenalties and also help them work through the foreign tax credits and preparations for OVDP programs as well as preparing tax amendments leading to a satisfying, efficient and worry free maintenance of tax returns.