Foreign Asset Reporting: What You Need to Know
US Citizens, residents and Green Card holders need to report financial assets held outside of the United States. This includes such items as bank and investment accounts, foreign retirement plans, insurance contracts, and educational savings plans (ex. Canadian RRSPs and RESPs). In addition, any inheritances and status as a trust beneficiary or trustee need to reported annually.
If you own an interest in a foreign business entity such as a corporation, partnership or other association, special annual filings are also required.
If you have never reported these in the past on your income tax returns or as a separate Report of Foreign Bank and Financial Accounts (“FBAR” due April 15), now is a good time to do so.
The IRS currently has an Offshore Voluntary Disclosure Program (“OVDP”) in place to encourage non-reporters to become compliant. We do not know how long this will remain in place but we do know the IRS has become very astute at locating these unreported accounts with the cooperation of foreign governments.
Our services in this area include
- The Report of Foreign Bank and Financial Accounts (“FBAR”, Form FinCen 114)
- Statement of Specified Foreign Financial Assets (Form 8938)
- Foreign Business Required Reporting (Form 5471, Form 8865, etc)
