Taxpayers that have signature authority and/or a financial interest in a foreign bank account are required to file each year by June 30 what is commonly known as an FBAR Form (Foreign Bank Account Reporting Form TD F 90-22.1). This form allows the taxpayer to report specific details about such foreign accounts.
In order to continue to enforce tax compliance and monitor international taxpayers, a new form is being developed by the IRS. Form 8938, “Statement of Specified Foreign Financial Assets.” Form 8938 will be used by individuals to report an interest in one or more specified foreign financial assets. The instructions indicate that under a transitional rule most taxpayers won’t have to file the form until 2012.
If this applies to you, please do not hesitate to call us. We can provide you with more information and directions on filing the form and send you the form itself.
Tax Partner, Peter Hilera