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| Requirements for Reporting Foreign Accounts |
| Form 8938 (FATCA) |
- Who must file: Specified individuals, which include U.S. citizens, resident aliens, and certain non-resident aliens that have an interest in specified foreign financial assets and meet the reporting threshold.
- Reporting threshold:
- Single or filing separately from your spouse: 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 year.
- Married filing jointly: Total value of assets was more than $100,000 on the last day of the tax year, or more than $150,000 at any time during the year.
- Higher thresholds apply to U.S. citizens living abroad.
- Due Date: Form 8938 is attached to your annual return and due on the date of that return, including any extensions.
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| FBAR (FinCEN Form 114) |
- Who must file: U.S. persons, which include U.S. citizens, resident aliens, trusts, estates, and domestic entities that have an interest in foreign financial accounts and meet the reporting threshold.
- Reporting threshold: The aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year reported.
- Due Date: FBAR is due April 15, with an automatic extension to October 15.
- How to file: FBARs are not filed with the federal tax return. They must be filed electronically through the BSA E-Filing System or with the help of a tax professional who can file it on your behalf.
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| Additional Considerations |
- Penalties: Failure to file these forms can result in severe penalties, including monetary fines and potential criminal charges.
- Records Retention: Keep records for at least five years from the due date of the FBAR.
- Joint Accounts: If you hold a foreign account jointly with someone else, you must report the entire value of the account on your FBAR and Form 8938 if required.
- Signature Authority: You may also need to file an FBAR if you have signature authority over a foreign financial account, even if you do not have any financial interest in the account.
- Consult a Professional: Due to the complexity of these requirements, it is advisable to consult with a tax professional who is experienced in international tax matters to ensure compliance.
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