Foreign Asset Reporting

FATCA Compliance

Disclose Foreign Assets Correctly To The US Government To Avoid Severe Fines

As an expat living abroad,  it is likely that at some point you will open foreign bank accounts or own foreign financial assets such as foreign mutual funds, pensions, and life insurance schemes, that need to be reported.

Likewise, if you live in the US  and have foreign financial assets and accounts, they may also need to be reported. This also includes green card holders and certain visa holders.

Depending on the nature of these assets and accounts, they may or may not trigger a tax obligation in the US.

However, as a US citizen, even if your assets do not generate any US tax, you are still required to report all foreign financial assets and accounts once their aggregate value reaches certain thresholds. Failure to do so may result in severe fines.

We can help you report these assets and keep you compliant with FATCA.

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Steve, UK

Typical Questions We Often Answer

When do I need to disclose my foreign accounts?

Besides bank accounts, what else do I need to report?

How do I report my other assets I have abroad?

I own foreign mutual funds. Are they considered PFICs?

How do I report my PFICs?

What are the tax implications of owning foreign real estate?

How do I report my foreign pension?

I have interest in a foreign corp or partnership. Do I have to report?

Do I need to report asset transfers to accounts abroad?

What exchange rates should I use?

Different Foreign Assets Require Different Reporting

The type of foreign asset determines how it must be reported. Failure to disclose those assets or to report them correctly can result in significant fines up to $10,000 per account.

We can help you determine if you have to report foreign assets and prepare the appropriate forms for you.

FBAR (FinCEN 114)

The Foreign Bank Account Report is required when the aggregate value of all foreign accounts exceeds $10,000 at any time of the tax year.

Form 8938

The threshold for Form 8938 varies depending on your situation, starting at $50,000 for US-based taxpayers and $200,000 for US expats.


PFIC Reporting

Foreign mutual funds and other investments held through a non-US brokerage or even a local life insurance may be considered a Passive Foreign Investment Company (PFIC) and taxed as such.

Next Step - Schedule A Consultation With Us

During the consultation we assess your tax situation and will provide you with a quote. Our transparent, fixed fee pricing means you won’t have any surprises.

Our experienced accountants prepare your tax return including all required forms to report foreign assets in compliance with FATCA.

Foreign asset reporting is an important part of US tax obligations but often overlooked by US citizens abroad.

Not all foreign assets are reportable though.