The Internal Revenue Service (IRS) recently published a Tax Tip in which it encourages eligible taxpayers to consider an offer in compromise. As the IRS explains, this is an option for taxpayers who either “can't pay their full tax liabilities” or for whom “paying the entire balance owed would cause financial hardship.” But, while submitting an offer in compromise and settling with the IRS is one option for eligible taxpayers, it isn’t the only option that is available.

The deadline to file a Report of Foreign Bank and Financial Accounts (FBAR) for the 2021 tax year was October 15, 2022. Taxpayers who had qualifying offshore accounts in 2021 and failed to file an FBAR by October 15 are now delinquent. If you find yourself in this situation, here is what you need to know: