As you may have read in the news, the IRS continues to scrutinize taxpayers who have foreign financial assets and/or accounts and especially those who have failed to report such assets correctly to the IRS and other governmental agencies.
For example, these annual filings can include disclosure of ownership or beneficiary rights in foreign trusts, ownership in a foreign corporation or disregarded entity, bank and brokerage accounts held with foreign financial institutions, or an interest in a foreign retirement plan. In some instances, it can be very difficult to know or verify there is a requirement to report certain assets and the tax effects of doing so.
Therefore,we have prepared a brief summary of two of the more common foreign financial asset reporting requirements (Form 8938 and Form 114) which can be accessed on our website.
Since these are annual filing requirements we do encourage you to review these items at least once a year if you believe you may have a reporting requirement. If you have any questions or concerns regarding foreign financial asset reporting requirements, please contact us and we will be happy to assist.
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January 27, 2016