You may need to fill out Treasury Department Form 90-22.1 (PDF) every year if you own, or have an interest in, any foreign bank accounts or other types of financial accounts based outside the United States. This report is separate from your income tax return, although the two reports can be interrelated.
You must report accounts held in foreign banks and other financial institutions if your total balance in all accounts is $10,000 or greater at any point during the year. This is required for accounts for which you are the owner AND accounts over which you are not the owner but have signature authority to conduct transactions on behalf of the account owner.
Information on the following types of foreign financial accounts would need to be reported if over the $10,000 threshold:
• Bank accounts (checking and savings)
• Investment accounts
• Mutual funds
• Retirement and pension accounts
• Securities and other brokerage accounts
• Debit card and prepaid credit card accounts
• Life insurance and annuities having cash value
The IRS has stepped up enforcement of the foreign bank reporting requirements have started assessing severe penalties for failure to file and failing to report their foreign income.
Contact Blackman and Sloop if you have questions about reporting foreign bank accounts.
About Blackman & Sloop CPAs, P.A.:
Blackman & Sloop is a full-service CPA firm headquartered in Chapel Hill, North Carolina and is actively involved in auditing, taxation, management consulting, financial planning, and related services. The firm directs a large part of its services toward providing management with advice on budgeting, forecasts, projections, financing decisions, financial analysis, and tax developments. The firm also performs review and compilation services and prepares not-for-profit, corporate, individual, estate, retirement plan, and trust tax returns as well as technology consulting services regarding installation and training on QuickBooks. Blackman & Sloop provides services in Raleigh, Durham, Chapel Hill, RTP, Hillsborough, Pittsboro, Charlotte, and the rest of North Carolina. To find out more please visit http://www.blackmansloop.com
Contact: CPA cpa@blackmansloop.com
Toll Free: 1-877-854-7530The Exchange West
1414 Raleigh Rd, Suite 300 Chapel Hill, NC 27517