Do you have a foreign reporting requirement?

If you own an asset in a foreign country, trade cryptocurrency in a foreign currency, worked abroad, received, or gave a gift or bequest to a foreign person, are a partner or shareholder of a foreign entity, or are the beneficiary of a foreign trust, you may have a U.S. reporting requirement.

It is very important to discuss all assets or financial transactions with your tax professional. The reporting typically isn’t a taxable transaction, but not reporting the transaction or asset can come with hefty penalties.

Examples of foreign financial accounts subject to U.S. reporting

• Bank accounts savings, checking, time deposits
• Securities accounts brokerage, derivatives
• Insurance policies & annuities with a cash value
• Pensions / Retirement accounts
• Mutual Funds
• Any other accounts maintained in a foreign financial institution

Do you have a financial interest in or signature authority over any financial accounts outside of the U.S.?

Examples include:

• Bank accounts for convenience and access
• Pensions earned in a foreign country while working overseas
• Signature authority on a parent’s account
• Signature authority on account of a foreign entity