US CITIZEN ALERT!

I have just learned from an enrolled agent that the new Treasury Dept./IRS rules have become much stricter and this involves you if you have ANY foreign deposit account(s), no matter what the balance was for the year.
Forget the $10,000.00 maximum balance! If you have any foreign bank or other deposit account you need to file the FBAR form FinCEN Report 114 electronically on the BSA website.  The old TD F 90-22.1 form is no longer valid.

The new web filing is supposed to be better (easier) but whose idea was it? Big government, so if you do not want to do it yourself contact someone with experience.

Have the following available:

1. Name of foreign bank or financial institution
2. Full address
3. Your account number
4. The highest amount of account balance in the year.

Failure to report Penalty:

A person who is required to file an FBAR and fails to properly file may be subject to a civil penalty not to exceed $10,000 per violation. If there is reasonable cause for the failure and the balance in the account is properly reported, no penalty will be imposed. A person who willfully fails to report an account or account identifying information may be subject to a civil monetary penalty equal to the greater of $100,000 or 50 percent of the balance in the account at the time of the violation.. Willful violations may also be subject to criminal penalties.

OTHER FATCA FORMS TO BE AWARE OF:
FORM 8938:
Who Must File Form 8938
U.S. Citizens Living Abroad:
For U.S. citizens who are considered by the IRS to be foreign residents for the entire tax year or who meet the physical presence test for living in a foreign county, the new limits are:

• Single: Aggregate foreign assets of USD 200,000 on the last day of the year or USD 300,000 at any time during the year.
• Married Filing Jointly: Aggregate foreign assets of USD 400,000 on the last day of the year or USD 600,000 at any time during the year.

For more details on who needs to file, what constitutes foreign assets, and other details, connect with me on TaxConnections.

If you did not inform us of your financial accounts that meet the requirements for filing a form 8938 or for any other reason you filed your tax return already without the required 8938 form then you will have to file an amended (1040X) return to submit the 8938.

Penalty:
$10,000 penalty for first time and $50,000 for failure to comply
Form 5471:
Form 5471 is used by certain U.S. citizens and residents who are officers, directors, or shareholders in certain foreign corporations. The form and schedules are used to satisfy the reporting requirements of sections 6038 and 6046, and the related regulations. Category 2 filer who owns or has acquired 10% or more of the total value of the stock of a foreign corp. I charge 1800 baht for a category 2 filer. Again this is supposed to be filed with your annual income tax return. If you already filed your return for this year you will need to file an amended return (1040X) to attach the 5471.

Penalty:
A $10,000 penalty is imposed for each annual accounting period of each foreign corporation for failure to furnish the required information within the time prescribed.

I AM NOT TRYING TO SCARE YOU JUST INSTILL THE FEAR OF THE LONG ARM OF THE FINANCIAL CRIMES ENFORECMENT NETWORK INTO YOU. I DO NOT WANT TO SEE YOU IN TROUBLE WITH THEM. FEAR THEM MORE THAN THE IRS. My brother in Seattle knows of people who have been put in jail for non-compliance.

In accordance with Circular 230 Disclosure