Puget Sound Tax Law Attorney Focuses on Foreign Bank Accounts
Washington Tax Law Firm Will Protect Your Rights
The Internal Revenue Service (IRS) treats money held in foreign bank accounts differently than money deposited in domestic accounts, and in some cases, the IRS has taken steps to discourage foreign account usage.
If you have a financial interest in, or signature authority over, a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account, exceeding certain thresholds, the Bank Secrecy Act may require you to report the account yearly to the Department of Treasury by electronically filing a Financial Crimes Enforcement Network (FinCEN) 114, Report of Foreign Bank and Financial Accounts (FBAR). U.S. citizens are required to file an FBAR if:
- They had a financial interest in or signature authority over at least one financial account located outside of the U.S., and
- The aggregate value of all foreign financial accounts exceeded $10,000.00 at any time during the calendar year reported.
A person who holds a foreign financial account may have a reporting obligation even when the account produces no taxable income. The reporting obligation is met by answering questions on a tax return about foreign accounts (for example, the questions about foreign accounts on Form 1040 Schedule B) and by filing an FBAR.
Contact an Experienced Washington Tax Law Attorney Today
Do you have questions regarding how the IRS treats foreign bank accounts? The tax attorneys at Lana Kurilova Rich PLLC can answer questions and help offer solutions. Contact us online or call (425) 289-0629 for an initial phone consultation today. Your case can be handled entirely via phone, email, and videoconferencing, and we provide solid legal representation, no matter where you live.
