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Reminder: report foreign bank and financial accounts by June 30

IR 2015-92

IRS has issued a reminder that the due date for filing 2014 Form 114, Report of Foreign Bank and Financial Accounts (FBAR), is Tuesday, June 30.

Background. U.S. citizens and resident aliens are legally required to report any worldwide income, including income from foreign trusts and foreign bank and securities accounts. In most cases, affected taxpayers (i.e., U.S. citizens and resident aliens with worldwide income subject to the reporting rules) will need to fill out and attach Schedule B, Interest and Ordinary Dividends, to their tax return. Part III of Schedule B asks about the existence of foreign accounts, such as bank and securities accounts, and usually requires U.S. citizens to report the country in which each account is located.

Certain taxpayers may also have to fill out and attach to their return Form 8938, Statement of Foreign Financial Assets. Generally, U.S. citizens, resident aliens and certain nonresident aliens must report specified foreign financial assets on Form 8938 if the aggregate value of those assets exceeds certain thresholds.

Separately, certain taxpayers with foreign accounts during 2014 must file a Financial Crimes Enforcement Network (FinCEN) Form 114 (FBAR) with FinCEN, a bureau of the Treasury Department. It is not a tax form and cannot be filed with IRS. The form must be filed electronically and is only available online through the BSA E-Filing System website. In general, the filing requirement applies to anyone who had an interest in, or signature or other authority over foreign financial accounts whose aggregate value exceeded $10,000 at any time during 2014.

June 30 deadline is approaching. IRS has issued a reminder that anyone who meets the requirements described above must file an FBAR by next Tuesday, June 30.

References: For reporting requirement for individuals with foreign assets, see FTC 2d/FIN ¶  S-3650; United States Tax Reporter ¶  60,114.06; TaxDesk ¶  815,516; TG ¶  60611.

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