FBAR/FATCA PROCESSING

The Foreign Account Tax Compliance Act (FATCA) requires U.S. taxpayers to report their foreign financial assets to the IRS using Form 8938, Statement of Specified Foreign Financial Assets. This reporting is in addition to the FBAR filing requirement.

FATCA is designed to combat tax evasion by U.S. taxpayers holding financial assets outside the United States. Penalties for non-compliance are severe.

For more information on FBAR, please visit at https://www.irs.gov/businesses/small-businesses-self-employed/report-of-foreign-bank-and-financial-accounts-fbar

• U.S. Taxpayers Living in the U.S.:
  • Single: If the value of your specified foreign financial assets exceeds $50,000 on the last day of the tax year or $75,000 at any time during the year.
  • Married Filing Joint: If the value of your specified foreign financial assets exceeds $100,000 on the last day of the tax year or $150,000 at any time during the year.
  • Married Filing Separate: If the value of your specified foreign financial assets exceeds $50,000 on the last day of the tax year or $75,000 at any time during the year. (For joint assets, report half the value, but the full amount on Form 8938.)

• Foreign financial accounts (e.g., foreign bank accounts, investment accounts)
• Foreign non-account assets held for investment, such as:
  • Foreign stocks and securities
  • Foreign financial instruments
  • Contracts with non-U.S. persons
  • Interests in foreign entities

Form 8938 is submitted with your annual income tax return.

For more detailed information on FATCA, please visit:

 https://www.irs.gov/businesses/corporations/foreign-account-tax-compliance-act-fatca