In the United States, cross-border commerce within the country is a complex and intricate interplay between federal and state laws. Each state has its own reporting, HR, tax, and other laws that need to be followed to the letter, meaning the various branches may be run radically differently.
When it comes to running businesses across international borders, the rules and regulations become even more esoteric and difficult to follow. Reporting requirements, fees, and paperwork can take up a huge amount of resources if you don’t find the right specialists to perform this work for you.
One of these reporting requirements – report of foreign bank and financial accounts (FBAR) – can be especially arduous to comply with. FBARs aim to combat money laundering, tax evasion, and other financial crimes, but they are onerous for smaller operations without dedicated compliance teams.
FBARs are difficult in large part thanks to the variability in what businesses need to report. For example, a business that sells shoes that is HQ’d in a foreign nation will have different reporting requirements than a company that provides consulting services. Reporting requirements also differ based on the size of the organization.
In addition to what types of businesses need to fill out FBARs, there are also requirements about the types of accounts that need to be reported and the thresholds within those accounts that need to be detailed. Failure to report these details accurately can lead to hefty fines and even prosecution in the event that the regulatory agency – in this case, the Financial Crimes Enforcement Network (FinCEN) – investigates the business and finds these discrepancies.
This is why international businesses, or U.S.-based businesses that operate a bank or other financial account outside of the U.S., are highly recommended to enlist the services of tax lawyers that specialize in FBAR requirements. These lawyers can help identify the applicable portions to fill and file FBARs in a timely manner to help avoid incurring additional fees.
For applicable businesses operating in the San Diego area, Hone Maxwell is the firm we have heard most recommended by clients and friends alike. Hone Maxwell has been providing international tax and commercial law services for over a decade, and the firm enjoys a sterling reputation through both word of mouth and online testimonials.
If you operate a commercial business in the United States while holding a foreign bank or financial account, the tax and commerce laws may seem daunting. Fortunately, the legal expertise provided by firms like Hone Maxwell can save you and your business time and resources by providing filing and reporting assistance before your next review. Call today:
3465 Camino del Rio S #400, San Diego, CA 92108