Do You Have Foreign Assets? If Yes, Things You Need to Know
Foreign Asset Reporting, known as FBAR-FinCEN 114, has been a very hot topic with the Internal Revenue Service and the US Treasury Department. As a US Citizen, you are required to report certain foreign assets each year through the filing of an FBAR form. The due date of this filing has been revised to April 15, 2017 for calendar year 2016 reportable assets. The reportable assets are as follows:
Cash in foreign bank accounts
Foreign financial brokerage accounts
Interests in foreign partnerships
Foreign mutual funds
Foreign pension and retirement accounts
The above assets must be reported if:
You own or have a financial interest in them (signature authority or joint interest) and
2.The aggregate value of the assets exceeds $10,000. The value is determined for each account as the highest balance at any time during the calendar year even if the balance was only for one day. Joint accounts with non-spouse are reported as the total account balance and not just your percentage ownership. You must covert the account to US dollars using the FMS rate at December 31, 2016
The filing of the FBAR is only a reporting requirement and there is no tax calculated on these assets.
The penalties for not filing a required FBAR are significant. Up to $10,000 per account per year for up to six years.
We have prepared and filed FBAR reports for many of our clients each year. We have also successfully settled non-filing penalties assessed to individuals for little or no money due.
Please contact our office if the FBAR reporting pertains to you or you need additional information on this topic.