Undisclosed foreign accounts: Handle with care

Description

Abstract: It’s critical that anyone who owns or controls any foreign financial accounts — such as bank accounts, brokerage accounts, mutual funds or trusts — understand their reporting obligations. This article discusses specific requirements, along with penalties for noncompliance. It also explains how those who have undisclosed foreign accounts can reduce their penalties by entering the IRS’s Offshore Voluntary Disclosure Initiative (OVDI).