Do you know what special reporting is required?
If you have a bank account, brokerage account, mutual
fund, trust or other type of foreign financial account, you may need to file
Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR).
The IRS requires certain taxpayers to file an FBAR
because foreign financial institutions may not be subject to the same reporting
requirements as domestic financial institutions. The FBAR is a tool to help the
United States government identify persons who may be using foreign financial
accounts to circumvent United States tax law. Investigators use FBARs to help
identify or trace funds used for illicit purposes or to identify unreported
income maintained or generated abroad.
In general, you must file an FBAR when the total value of
all foreign financial accounts that you own or have signature authority over
exceeds $10,000 at any time during the calendar year. The FBAR is not filed
with your federal income tax return; it is an annual report that the Department
of the Treasury must receive on or before June 30 of the year following the
calendar year being reported. Your tax professional can help you with this
filing if required.
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