Foreign Bank Account Issues

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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