Are Overseas Goldmoney Accounts Required on FBAR?

Are Overseas Goldmoney Accounts Required on the FBAR?

Are Overseas Goldmoney Accounts Required on the FBAR: A common question we receive about overseas previous metal accounts, is whether or not a Goldmoney account is reportable on the FBAR. Even though the underlying assets are precious metals (which have limited FinCEN Form 114 reporting requirements), the Goldmoney account would presumably be reportable on the FBAR. The reason why a Goldmoney account is reportable on the FBAR is because it meets the elements of a reportable account as required by the IRS. First, it is a foreign financial account. And, while generally (subject to exceptions) precious metals held in a safety deposit box or in a person’s house/safe are not reportable — Goldmoney provides each customer an account that is identified by a number. In addition, Goldmoney utilizes a foreign address in the Channel Islands/Jersey. Therefore, when looking at the totality of the facts, Goldmoney accounts that are held overseas — and would fall into confines of an account reportable on the FBAR. If a U.S. person is out of compliance for not properly reporting their foreign bank and financial accounts to the IRS, they may become subject to fines and offshore penalties. These FBAR penalties range from civil non-willful or civil willful penalties — and even criminal FBAR penalties (which can include imprisonment, but is not common). Let’s review the basics of the overseas Goldmoney accounts

FBAR Amnesty Program for Goldmoney Accounts

The FBAR Amnesty Programs are programs developed by the Internal Revenue Service to assist Taxpayers who are already out of compliance for non-reporting; non-filing of overseas Goldmoney accounts can be remedied through these programs.

Some of the more common programs, include:

• Voluntary Disclosure Program (VDP or “New” OVDP)
• Streamlined Domestic Offshore Procedures
• Streamlined Foreign Offshore Procedures
• Delinquency Procedures
• Reasonable Cause

Can I Just Start Filing FBAR for Goldmoney Accounts This Year?

No, unless the current year is the first-year you had an FBAR Reporting requirement. If you had a prior year reporting requirement, but only begin to start filing in the current year (Filing Forward) it is illegal. In the world of offshore disclosure, this is referred to as an FBAR Quiet Disclosure. The IRS has warned taxpayers that if they get caught in a FBAR Quiet Disclosure situation, it may lead to willful penalties and even a criminal investigation by the IRS Special Agents.

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