Filing Requirements for Your Portfolio’s Foreign Financial Accounts

Filing Requirements

There are two possible reports to file.  First, if you have an interest in, or signature or other authority over, one or more foreign financial accounts whose combined value exceeded $10,000 at any time during 2015 you are required to file FinCen Form 114, Report of Foreign Bank and Financial Accounts.  The report is due by June 30, 2016 and must be filed electronically through the BSA E-Filing System website.

Second, you must report specified foreign financial assets on IRS Form 8938 if the combined value of those assets exceeds certain thresholds. Reporting thresholds vary based on whether a taxpayer files a joint income tax return or lives abroad. The lowest reporting threshold for Form 8938 is $50,000 but varies by taxpayer. See the form’s instructions for more information.

The IRS provides a comparison chart of the filing requirements for both forms.

The Anders team is well versed in these filing requirements.  Please contact us for more information or assistance.