If you have a financial interest in or a signature authority or other authority over any foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account you may want to pay close attention to this blog post. There is a deadline approaching.
According to the Bank Secrecy Act, if the aggregate value of your foreign account exceeds $10,000 at any time during the calendar year, you are required to file form TD F 90-22.1 with the IRS by June 30th (no extensions of time will be granted).
Penalties for non-willful non-compliance are up to $10,000. If non-compliance is willful, penalties may be up to the greater of $100,000 or 50% of account balances. Criminal penalties may also apply.
If the value of your account was $50,000 or more on the last day of the tax year or $75,000 or more at any time during the tax year, you may also be subject to Foreign Account Tax Compliance Act and additional reporting requirements.
For more information you can also visit:
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/FAQs-Regarding-Report-of-Foreign-Bank-and-Financial-Accounts-(FBAR)—Filing-Requirements
If you believe that any of these acts apply to you, please do not hesitate to call us.
Gabrielle Luoma, CPA
GMLCPA is a Full Service Accounting Firm
