Taxpayer Don't Forget to Report Foreign Financial Assets and Accounts:
With the tax return filing deadline fast approaching, taxpayers should not forget to report any foreign income or financial assets on their tax returns. Foreign dividends and interest must be disclosed on by checking the box on your Schedule B, and foreign income from trusts and gifts should be disclosed on the Form 3520. Even certain foreign assets totaling greater than $50,000.00 that are income producing or not must be disclosed on the Form 8938, Statement of Foreign Assets. Many tax return preparers in the past failed to ask clients if they had foreign income and assets, and such mistakes are less common with the prevalent media of the IRS's collection efforts against foreign assets. However, don't get unwittingly caught because the penalties for non-reporting are stiff.
Moreover, FBAR disclosures must be made this June 30th electronically to the U.S. Treasury through the following website: http://bsaefiling.fincen.treas.gov/main.html. It is not much comfort that the website is entitled, "Financial Crimes Enforcement Network."
If you have questions about foreign income or asset issues, feel free to contact us.
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