TSCPA Committee Issues Letter Requesting Rationalization of International Financial Account Reporting
The Texas Society of CPA’s Federal Tax Policy Committee has issued a letter to the U.S. Treasury Department highlighting concerns that burdensome international financial account reporting requirements and related penalties for noncompliance are hindering U.S. taxpayers’ ability to fully participate in international business. The committee appreciates recent IRS guidance, which provided relief for delinquent FBAR submissions if certain conditions are met. However, it expressed to Treasury that unclear and duplicative reporting instructions, methods, and deadlines confuse taxpayers and exacerbate compliance errors. It is in the best interest of both taxpayers and the IRS to simplify foreign financial investment reporting, facilitate compliance, and standardize enforcement.