Foreign Banks & The IRS
FOREIGN BANK AND AMERICAN’S BANK ACCOUNT REPORTING
Foreign banks, generally, must report to the U.S. Treasury the account numbers, balances, names, addresses, and American Citizen’s Social Security identification numbers.
American owned foreign entities must report the name, address, and U.S. Social Security numbers of each substantial U.S. owner.
Americans living abroad may feel the intense pressure of the U.S. Treasury put on undisclosed foreign accounts and income.
Many Americans are being asked, mandated in reality, to immediately close their accounts that may have existed for years with the foreign bank, but foreign banks want to disgorge themselves of this enormous administrative expense.
Although legal, Americans are finding it near impossible to open bank accounts in countries where they now live and work. Imagine moving to the U.S. and not being able to open a bank account because you are a citizen of another country.
Americans must file, if you qualify, the annual FBAR form TDF 90-22.1 for foreign accounts and reporting worldwide income on your annual U.S. tax return, with special note for foreign accounts and assets with an aggregate value exceeding US $50,000.
Required reporting includes:
- Any financial account maintained by an FFI
- Any stock or security issued by a non-U.S. person
- Any financial interest or contract held for investment that has a United States’s issuer or counter party
- Any interest in a foreign entity, such as Americans who purchase foreign real estate through an entity are covered by FATCA.