Who Do Virginia Taxpayers Call About Penalties for Unreported Foreign Accounts?

Penalties related to unreported foreign accounts often come as an unpleasant surprise. Many Virginia taxpayers first learn about them after receiving an IRS notice, reviewing past tax filings, or realizing that international reporting requirements were missed in prior years.

These penalties can apply even when no tax was owed and even when the failure to report was unintentional. Once penalties are on the table, the focus usually shifts from compliance to damage control.

Why Penalties for Unreported Foreign Accounts Are So Serious

Foreign account reporting penalties can be severe, especially when the IRS determines that required disclosures were not made over multiple years. Depending on the situation, penalties may relate to FBAR filings, FATCA disclosures, or other international reporting obligations.

Common scenarios include:
• Foreign bank or investment accounts that were never disclosed
• Accounts held overseas for convenience or family reasons
• Inherited foreign accounts that were overlooked
• Accounts reported incorrectly or inconsistently across tax years
• Prior filings prepared without addressing international reporting rules

In some cases, penalties arise before the taxpayer even realizes a reporting obligation existed.

When Penalty Concerns Usually Arise

Virginia taxpayers often begin worrying about penalties after one of three things happens. The IRS contacts them about foreign accounts, a tax professional flags an issue during a review, or the taxpayer independently discovers the oversight while preparing a return.

At that stage, reacting carefully matters. Filing corrective forms or responding to the IRS without a clear strategy can increase exposure rather than reduce it.

Who Virginia Taxpayers Typically Call for Help With Penalties

When foreign account penalties are involved, many Virginia taxpayers turn to a tax attorney experienced in international reporting and IRS enforcement matters. Penalty issues often require reviewing prior filings, determining whether penalties apply, evaluating available relief options, and communicating with the IRS in a controlled and strategic way.

This type of situation is often a strong fit for individuals concerned about FBAR penalties, FATCA-related exposure, or other consequences tied to unreported foreign accounts. Each case depends heavily on timing, intent, and the specific facts involved.

Addressing Penalty Exposure Before It Escalates

Penalties do not always mean the situation is beyond repair, but delaying action can limit available options. Understanding the scope of the issue early can help clarify next steps and reduce uncertainty.

Virginia taxpayers facing these concerns often benefit from a careful assessment of their reporting history and current exposure before taking corrective action.

Next Steps for Virginia Taxpayers

If you are worried about penalties related to unreported foreign accounts, speaking with a tax attorney who understands international reporting rules and IRS penalty procedures can help you better understand your situation and potential paths forward.

You can schedule a consultation with Tax Attorney Sammy Kim to discuss your circumstances and explore appropriate next steps.