Foreign Asset Reporting
Please note that any person or entity subject to the jurisdiction of the United States
(includes individuals, corporations, partnerships, trusts, and estates) having
a financial interest in, or signature or other authority over, bank accounts,
securities, or other financial accounts having a value exceeding $10,000 in a
foreign country, shall report such a relationship. An interest in a foreign
trust or estate may also require disclosure. Although there are some limited
exceptions, filing requirements also apply to taxpayers that have direct or
indirect control over a foreign or domestic entity with foreign financial
accounts, even if the taxpayer does not have foreign account(s). For example, a
corporate-owned foreign account would require filings by the corporation and
by the individual corporate officers with signature authority. Failure to
disclose the required information to the U.S. Department of the Treasury may
result in substantial civil and/or criminal penalties.
If you and/or your entity have a financial interest in any foreign accounts, you must file Form TD-F-90-22.1 required by the U.S. Department of the Treasury on or before June
30th of each tax year.
In addition, currently the Internal Revenue Service, under IRC §6038 and
§6046, requires information reporting if you are an officer, director or
shareholder with respect to certain foreign corporations (Form 5471);
foreign-owned U.S. corporation or foreign corporation engaged in a U.S. trade
or business (Form 5472); U.S. transferor of property to a foreign corporation
(Form 926); and, for taxable years beginning after March 18, 2010, if you hold
foreign financial assets with an aggregate value exceeding $50,000 (Form 8938).
These code sections describe the information required to be reported on the
respective forms, which are due when your income tax return is due, including
extensions. Therefore, if you fall into one of the above categories you may be
required to file one of the above listed forms. Failure to timely file may
result in very substantial monetary penalties.