Comprehensive FBAR Compliance Review for Act 60 Decree Holders

As a U.S. person residing in Puerto Rico under an Act 60 decree, you remain subject to U.S. federal tax and reporting laws, including the Report of Foreign Bank and Financial Accounts (FBAR). This means if you have a financial interest in or signature authority over foreign financial accounts and the aggregate value exceeds $10,000 at any time during the calendar year, you must file FinCEN Form 114. Many decree holders mistakenly assume their move to Puerto Rico exempts them from this critical filing. Our comprehensive review process cross-references your residency status, account balances, and ownership structures to identify potential FBAR filing requirements that are often overlooked, providing a crucial second opinion on your compliance. This analysis is grounded in the Bank Secrecy Act and its implementing regulations, which do not provide an exception for bona fide residents of Puerto Rico.

The FBAR filing threshold is not per account, but the aggregate value of all foreign financial accounts. This is a critical distinction that leads to common filing errors. For example, holding $4,000 in three separate foreign accounts triggers the filing requirement because the total value ($12,000) exceeds the $10,000 threshold. Our AI-driven system is designed to catch these nuances by aggregating data from all your declared foreign accounts to determine if a filing is necessary. We analyze account types, including bank accounts, brokerage accounts, mutual funds, and even certain foreign retirement plans, ensuring no stone is left unturned. This thoroughness is essential, as the penalties for non-willful failure to file can be substantial, as outlined in IRC Section 5321.

The penalties for failing to file an FBAR can be severe, jeopardizing the financial benefits of your Act 60 decree. Non-willful violations can result in a penalty of up to $10,000 per violation. If the IRS determines the failure to file was willful, the penalty can be the greater of $100,000 or 50% of the balance in the unreported accounts. Recent IRS campaigns, such as the one targeting high-income individuals with offshore accounts, signal increased scrutiny in this area. Our CPA-verified review helps identify these risks by flagging inconsistencies and potential non-compliance issues before they become a problem. We provide a detailed report outlining potential issues, allowing you to address them proactively with your tax advisor and fortify your compliance position.

While traditional CPA firms may charge thousands for a manual compliance review, our AI-powered platform offers a more thorough and efficient solution. We analyze over 200 compliance rules, including the complex interplay between Act 60, IRC Section 933, and FBAR requirements. Our system is designed to identify potential red flags that a manual review might miss, providing a level of detail that gives you confidence in your filing position. The process is simple: you provide your information, our AI conducts a deep analysis, and the results are verified by a qualified CPA. This dual-layer of review ensures you receive the most comprehensive and accurate second opinion on your FBAR obligations, protecting your assets and your Act 60 decree.