FOREIGN BANK REPORT

If you own a foreign bank account, brokerage account, mutual fund, unit trust, or other financial account, then you may be required to report the account yearly to the Internal Revenue Service. Under the Bank Secrecy Act, each United States person must file a Report of Foreign Bank and Financial Accounts (FBAR), if

1. The person has financial interest in, signature authority or other authority over one or more accounts in a foreign country, and
2. The value of the account exceeds $10,000 at any time during the calendar year.

Reporting and Filing Information

A person who holds a foreign account may have a reporting obligation even though the account produces no taxable income. Checking the appropriate block on Form 1040 Schedule B, and filing Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts, satisfies the account holder’s reporting obligation.

A foreign account holder must mail the Form TD F 90-22.1 on or before June 30 of the following year to:

U.S. Department of the Treasury
P.O. Box 32621
Detroit, MI 48232-0621

The FBAR is not to be filed with the filer’s Federal income tax return.

The granting, by IRS, of an extension to file Federal income tax returns does not extend the due date for filing an FBAR. There is no extension available for filing the FBAR.

The report must be signed by the person named in Part 1. If the report is filed on behalf of a Partnership, Corporation, or fiduciary, it must be signed by an authorized person.

Account holders who do not comply with the FBAR reporting requirements may be subject to civil penalties, criminal penalties, or both.

The link to the Form TD F 90-22.1 is http://www.irs.gov/pub/irs-pdf/f90221.pdf

The preceding is not intended to be legal advice pertaining to your situation and should not be construed as such.The information provided is intended as a general overview with regard to the subject matter covered.