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.
The Form 8938 is used to report foreign financial assets by all US citizens, domestic and foreign. While the FBAR only includes bank and investment accounts, the 8938 reports all financial assets including foreign partnerships, hedge funds and foreign equity funds. Depending upon your tax home, US or foreign, a variety of value limitations apply.
The reporting of foreign assets is complicated. Contact us with any questions you may have, we provide answers.
