Got Foreign Assets?
Treasury rules known as FBAR and FATCA may require greater disclosure and reporting on your income tax returnAre you aware of the nature of all your investments, both domestic and international?
Do you own or have control over foreign bank accounts with an aggregate value higher than $10,000 at any time during the calendar year? Do you own foreign company stock in a foreign brokerage account? How about a life insurance policy or annuity contract issued by a foreign company?
U.S. taxpayers (including individuals and business entities) are required to report on foreign assets or investments they hold in offshore accounts. Under the Bank Secrecy Act, you may be required to e-file what is known as the FBAR directly with the Financial Crimes Enforcement Network (FinCEN), a bureau of the Treasury Department. In addition, foreign assets and investments subject to the FATCA rules may need to be disclosed on a special form included with your income tax return.
Given the diversity of assets that many people hold, we advise against assuming that the FBAR and FATCA rules don't apply to you. The penalties that apply for noncompliance can be enormous.
As is often the case with tax laws, there are numerous exceptions and intricacies to the FBAR and FATCA rules, so be sure to contact our office for more details. We can help you understand whether the rules apply to you and what you need to do to comply with them.