June 30 deadline to report foreign accounts to IRS

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Travlin's picture
Travlin
Status: Diamond Member (Offline)
Joined: Apr 15 2010
Posts: 1322
June 30 deadline to report foreign accounts to IRS

“US Persons” are required to report to the IRS financial accounts they have out of the USA, and this includes precious metals.  The report must be received at their Detroit office by June 30.  I realize this doesn’t apply to most members and others already know.  But this can be a surprise if you started a precious metals account in 2010 at places like BullionVault or GoldMoney.  I learned about it from a thread here last year.

Some key points

If you had an aggregate balance of $10,000, at any time during 2010, in offshore accounts at one or more financial institutions, you must file.  So even if you had $5,000 at A, $4,000 at B, and $1,000 at C, you must report all three accounts.

This includes about anything of financial value held offshore, including brokerage accounts, mutual funds, whole life insurance, annuities, commodities futures or options accounts, and precious metals.

You also have to file if you have an account with a US financial institution if the account is located outside the US.  However, there is an exception for people using US military banking facilities overseas.

You do not have to file if you got your foreign investment from a financial institution located in the US.  This even applies to a foreign bank if the branch was in the US.

No extension will be granted on the deadline.

Penalties are severe and willful failure to report can cost the greater of $100,000 or half the account value, plus criminal charges.

This report must be filed every year for activity of the previous tax year.

More information

Excellent article from Forbes  http://blogs.forbes.com/kellyphillipserb/2011/06/21/fbar-deadline-looming/

FBAR filing information  http://www.irs.gov/businesses/small/article/0,,id=148849,00.html

FAQ  http://www.irs.gov/businesses/small/article/0,,id=210249,00.html and http://www.irs.gov/businesses/small/article/0,,id=210244,00.html

Downloadable form with instructions on the last three pages.  http://www.irs.gov/pub/irs-pdf/f90221.pdf

Results of a Google search for FBAR http://www.google.com/#hl=en&sugexp=ldymls&xhr=t&q=FBAR&cp=4&pf=p&sclient=psy&source=hp&aq=0&aqi=&aql=&oq=FBAR&pbx=1&bav=on.2,or.r_gc.r_pw.&fp=905e9081899b75b1&biw=1024&bih=611

I’m no tax expert so do your due diligence.  If you read the links you will know as much as me.

Travlin

dps's picture
dps
Status: Martenson Brigade Member (Offline)
Joined: Jun 27 2008
Posts: 442
Thanks!

I didn't know.  I appreciate the heads up.  ... dons

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