Foreign Account Tax Compliance Act
Under the Foreign Account Tax Compliance Act (FATCA), U.S. taxpayers must report any financial account with an aggregate amount over $10,000 in any given calendar year. Furthermore, FATCA also requires foreign financial institutes to report information about any U.S. taxpayers holding a financial account or any foreign accounts in which U.S. taxpayers have a substantial interest. Here are a few examples of what the IRS considers to be foreign financial accounts and may need FBAR filing.
Foreign account examples:
- Mutual funds
- Investment accounts
- Pension funds
- Life insurance annuities
- Commodity accounts
- Swiss bank accounts
- Foreign bank accounts
- Foreign brokerage accounts
Beyond the standard FBAR filings of foreign financial accounts, U.S. taxpayers must also fill out IRS Form 8938 (Statement of Specified Foreign Financial Assets), if any foreign asset(s) exceed $50,000 in value, $100,000 for joint returns. This also includes non financial assets such as land and interest in private businesses. Additional IRS forms may also be required, such as IRS Form 3520, IRS Form 3520-A, IRS Form 5471, or IRS Form 8865. PIASCIK expert tax consultants know every step necessary for you to be compliant with FATCA from opening a foreign bank account to establishing a trust for beneficiaries. PIASCIK is also knowledgeable with the exceptions to FATCA.
Exceptions include:
- IRA beneficiaries
- Correspondent accounts
- Specific trust funds
- Qualified foreign joint accounts
- Accounts already included in a consolidated FBAR
- Beneficiaries of specific retirement plans
With the complexities of understanding which foreign financial accounts must be reported and which are exempt from being reported, it isn't any surprise so many people seek out the expertise of PIASCIK to answer any questions about their foreign financial accounts. Even in the cases where you may not have filed appropriately, PIASCIK can help you apply for amnesty through OVDI programs to achieve compliance and reduce your chances of criminal charges.
Tax solutions with decades of expertise
PIASCIK has over 75 years of combined international tax law experience with 90 expatriates represented in over 49 countries. Our tax experts know how totalization agreements, expatriate taxation, tax treaties, foreign brokerage accounts and other tax rules can change your stance with the IRS. Our dedicated service is assessable 24 hours a day and 7 days a week to provide you with the convenience of getting answers. PIASCIK also understands that the first step is often the hardest, so now we even offer the initial consultation absolutely FREE with no obligations from you. Our world-class service even has flat rates available with no hidden costs, so you know what to expect from the beginning. Contact PIASCIK today – you have nothing to lose and valuable information about foreign accounts to get you started in the right direction.
