Foreign Bank Account and Foreign Financial Asset Reporting
U.S. taxpayers who hold foreign bank accounts or certain foreign financial assets may have reporting obligations.
(i) U.S. persons and entities with financial interest in or signature authority over foreign financial accounts exceeding a certain value (e.g. $10,000) must submit a Report of Foreign Bank and Financial Accounts (FBAR) on FinCen Form 114, filed with the Department of Treasury’s Financial Crimes Enforcement Network (FinCen). This is an annual obligation; filing deadline is April 15, with a 6-month automatic extension to Oct 15 available.
(ii) Specified domestic entities include certain domestic corporations, partnerships, and trusts that have an interest in specified foreign financial assets and the total value of assets was more than $50,000 on the last day of the tax year, or more than $75,000 at any time during the tax year must file a Foreign Account Tax Compliance Act (FATCA) report on IRS Form 8938. This is an annual obligation; form is filed with federal income tax return.
Authorities For Further Research(i) United States Code, 26 U.S.C. § 5314 (i.e. Internal Revenue Code (IRC))
(ii) United States Code, 26 U.S.C. § 1471 – 1474 (i.e. Internal Revenue Code (IRC))
