Helpful hints: Foreign Bank Account Reporting

MGI member firm, MGI Repetti is based in New York, USA, and is a leading international and domestic certified public accounting firm.  CEO, John Repetti, is also chairman of MGI and member for North America of the International Committee.  Here they share their helpful hings on Foreign Bank Account Reporting following a number of enquires from fellow member firms.

Maxine Brock, International Marketing Director finds out more.

What are the implications to fellow member firms?

If you are the owner or have signature authority over a bank or brokerage account in a foreign country, please note that you might be required to file various forms.

If the total value of the accounts exceeded $10,000 at any time during the year, you are required to file Form TD F 90-22.1.  The form, known as an FBAR (Foreign Bank Account Reporting) form is due June 30th following the year in which you had the accounts.  Thus, the report for 2012 is due June 30, 2013.

If the account had a balance in excess of $50,000 at the end of the year or exceeded $75,000 ($100,000 and $150,000 for married lying jointly) at any time during the year, you must file Form 8938 with your tax return for 2012, (including extensions).

If you received, directly or indirectly, more than $100,000 from a nonresident individual or a foreign estate that you treated as a gift or bequest during 2012, you must file Form 3520 with your income tax return (including extensions).

What are the penalties for failure to file any of the forms?

The penalties for failure to file any of the forms can be severe.

To download the full article click Harvey's Helpful Hints: Foreign Bank Account Reporting - 04/16/2013.

For more information or if you have any questions contact Harvey Wahrman at 212.302.3300 x579 to arrange for a free, no-obligation conference to discuss your situation and what we can do to help you.