Am I Required to Report My Foreign Financial Accounts?

Am I Required to Report My Foreign Financial Accounts?

“Am I required to report my foreign financial accounts?” — We get asked that question pretty often.  More and more people in the United States have foreign financial accounts varying from a foreign bank account, brokerage account, mutual fund, unit trust, or other financial account.  With foreign financial accounts, there is a responsibility for reporting these accounts to the government even if the accounts do not generate any taxable income.  There are certain criteria to determine if you must report your foreign financial accounts.

Foreign Financial Accounts Reporting Requirements

The Bank Secrecy Act requires U.S. persons who own a foreign bank account, brokerage account, mutual fund, unit trust, or other financial account to file a Form TD F 90-22.1, Report of Foreign Bank and Financial Authority (FBAR), if:
  1. The person has financial interest in, signature authority, or other authority over one or more accounts in a foreign country, and
  2. The aggregate value of all foreign financial accounts exceeds $10,000 at any time during the calendar year.

A U.S. person is:

  • A citizen or resident of the United States, or
  • Any domestic legal entity such as a partnership, corporation, estate or trust.
A foreign country includes all geographical areas outside the United States, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, and the territories and possessions of the United States (including Guam, American Samoa, and the United States Virgin Islands). An account in an institution known as a United States “military banking facility” is not considered to be an account in a foreign country.

Learn more about the IRS Requirements for Foreign Financial Accounting by visiting this linkhttp://www.irs.gov/uac/Foreign-Financial-Accounts-Reporting-Requirements.  You should discuss your specific tax situation with a Certified Public Accountant or other professional that handles tax accounting and foreign financial accounts.

Schedule a Phone Call or an In Office Visit

We’ll be happy to review your Foreign Financial Accounts with you by phone or in person. For each account, you’ll need to have the name of your account, address, account number, year-end balance and highest balance of the year. With this information, we can determine if you need to file your foreign accounts with the IRS.
Click here to schedule an appointment.

 

 

*Disclaimer:  The information on this website should not be used as general information only.  It is advised that you seek the advice and guidance of a professional Tax Adviser who is familiar with all the relevant facts and laws.

Robert Patterson

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