In today’s global market international opportunities can be the key to growth for many clients.
Our focus on quality, relevant, and personalized services does not stop with the local market. For foreign entities looking to establish a presence in the US market, we help you determine the best tax structure here in the US, and can help you coordinate your set up of operations, and assist you with finding corporate or immigration attorneys, bankers, insurance agents, and other professionals you might need.
If your company has industry specific or environmental regulations to comply with, we also can help find area specialists with knowledge of your industry to make sure you comply with those regulations. Working with an experienced CPA firm is not a luxury, its good business.
MANAGING YOUR RELATIONSHIP WITH THE IRS
International Financial Assets
Years ago, the US government was concerned that some US taxpayers were evading domestic tax laws by hiding their assets in foreign financial institutions. This concern led to the Bank Secrecy Act and the requirement that US taxpayers who have a financial interest in or signature authority over any foreign financial account must report those relationships to the IRS.
You’re required to report if the aggregate value of the foreign account(s) is greater than $10,000 at any time during a calendar year. The types of accounts that you are required to report include bank accounts, securities, and most other financial accounts in any foreign country.
You can report your foreign financial interests by using an FBAR – a Report of Foreign Bank and Financial Accounts – and you must file that form by April 15 of the calendar year following the year in which you had the financial relationship.
You are responsible for ensuring that the information on the form is correct. If you extend your personal return so that it is due October 15th, then the deadline for filing the FBAR is also extended to October 15th. Here are some types of accounts that you may be required to report if the aggregate balance in all of the accounts exceeds $10,000 at any time during the calendar year:
- International Business Accounts – If you are an officer or board member who has signature authority over a financial account for a business in a foreign country, you are required to report the account.
- Power of Attorney – If you hold Power of Attorney over a family member’s finances, you are required to report the account if it otherwise qualifies for FBAR reporting.
- International Family Accounts – If your name appears on a financial account along with family members who still reside in the foreign country and you have signature authority over the account – you must report the account.
- Inherited Accounts – If you inherit an account in a foreign country, you are required to report it even if the account is later moved to a US financial institution.
Nason Accounting is here to help you navigate the tricky waters of managing international financial matters
Give us a call at (864) 297-7742 to discuss your particular situation with an expert, or fill out our online form to request a consultation.