FBARS and Form 8938
If you accumulate more than $10,000 in a foreign banks or financial institutions, you are required to submit a yearly report of your foreign bank and financial accounts to the US Department of Treasury. This report is commonly referred to as an FBAR (Foreign Bank Account Report). The form is: TD F 90-22.1 and is due by June 30 of each year …no extensions or exceptions apply. Individuals and business owners with foreign assets exceeding higher thresholds may be required to file form 8938 with their federal income tax return. This requirement follows the much publicized Foreign Account Tax Compliance Act (FATCHA). Call Fred Tax Service to assess your financial situation because the asset reporting rules are complicated and can be easily misunderstood.