Foreign Bank Reporting Requirements
Do you have a bank account overseas? Do you have a retirement plan in another country? If so, you might have a requirement to file forms with the government other than your usual tax forms and Form 1040. Failure to file those forms can result in a penalty of $10,000 or more!
Individuals with ownership or the ability to sign for a foreign bank account(s) or foreign retirement account(s) must file Form 114 with the Financial Crimes Enforcement Network reporting their interest in those accounts.
The threshold for the filing requirement is for anyone with account balances that total over $10,000 at any time during the calendar year. This requirement applies to U.S. citizens and “green card” holders. The form is due June 30, 2016 for the 2015 calendar year. There is NO extension for this form. Failure to file this form can result in a penalty of at least $10,000 per year.
If you are one of our tax clients, make sure you mention to us your foreign bank or retirement account during your tax preparation process so that we can treat it properly on the tax forms and help you to file any additional forms necessary.
If you are not one of our clients and you would like help navigating these rules and complying with the filing requirements, please give us a call and ask for Nick Vogel.