Have you accumulated more than $10,000 in foreign banks or financial institutions?
If your answer is “yes”, you are required to submit a yearly report of your foreign bank and financial accounts to the US Department of Treasury. This report is commonly referred to as an FBAR (Foreign Bank Account Report).
We want to make you aware of the FBAR guidelines, so you can stay prepared and file on time.
FBAR guidelines specify that all U.S. persons must file, including U.S. territory entities. The form you need for FBAR is FinCen Report 114, and it is due by June 15 of each year. Extensions apply.
Form 8938 requirements explain that all U.S. residents must file. This excludes U.S. territories. Individuals and business owners with foreign assets exceeding higher thresholds may be required to file form 8938 with their federal income tax return. This requirement follows the much-publicized Foreign Account Tax Compliance Act (FATCA).
Before filing, let’s discuss your individual financial situation because the asset reporting rules are complicated and can be easily misunderstood. If you have any questions regarding FBAR or Form 8938 requirements, we encourage you to contact us.