Are FBAR and FATCA foreign to your clients?.

Note any red flags in clients' background, wealth status and other information indicating they may have financial interests located in other countries. Be sure to include a question pertaining to the Report of Foreign Bank and Financial Accounts (FBAR) and Foreign Account Tax Compliance Act (FATCA) in the tax organizer, and make inquiries about information not initially provided regarding other sources of income.

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This may help avoid client disputes and potential liability for tax penalties. CAMICO offers policyholders sample engagement letter language regarding FBAR and FATCA.

A taxpayer's obligations to file FATCA and FBAR forms are distinct from each other and may...