Financial interests, accounts or assets in foreign countries.

• Position: CAMICO Insurance: tip of the month

Know your clients well and note any red flags in their 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 Accounts (FBAR] and Foreign Account Tax Compliance Act (FATCA) in your tax planner, and make inquiries about information not initially provided to you regarding other sources of income.

This may help you avoid disruptive disputes with your client and potential liability for tax penalties.

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