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Tag Archive for FinCEN

FBAR Instructions For U.S. Expats Filing FinCEN Form 114

Hugo Lesser

Americans living abroad are still required to file a U.S. tax return, and furthermore they may have to report their foreign bank and investment accounts by filing a Foreign Bank Account Report, or FBAR.

Due to the 2010 Foreign Account Tax Compliance Act (FATCA), most foreign banks and other financial firms are now reporting their American account holders account balance and contact details to the IRS. Read more

PFIC And Canadian Mutual Funds

Why are PFIC rules important for holders of Canadian mutual fund?

Many American citizens living or working in Canada have invested in Canadian mutual funds – likewise, many Canadians who subsequently moved to the United States retained their Canadian mutual funds holdings. They likely are unaware of the PFIC rules. Consequently many American taxpayers holding Canadian PFIC have not met their reporting obligations. Not only that  but PFIC investments are to be avoided since its taxation (with the exception of the QEF regime) is designed to be punitive. Read more

Expat Taxes For Americans Living In Denmark

Living in Denmark is an incredible experience for a number of reasons, including the friendly locals, the free, high-quality public services, the hygge, the charming culture, not to mention easy access to the rest of Europe. As an American expatriate living in Denmark though, what exactly do you need to know regarding filing U.S. expat (and Danish) taxes?

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U.S. Expat Taxes For Americans Living In Sweden

It has been estimated that there are several thousand Americans living in Sweden.

Living in Sweden is an incredible experience for a number of reasons, including the friendly locals, the free, high-quality public services, the charming culture, not to mention easy access to the rest of Europe. As an American expatriate living in Sweden though, what exactly do you need to know regarding filing U.S. expat (and Swedish) taxes?

Read more

Self-Prepared Returns For Tax Payers

Larry Stolberg

Often taxpayers, whether Canadian or U.S. tax filers, are self-preparing their own returns with tax preparation software packages purchased in the market place. Problems arise numerous times in that the taxpayer not being aware of tax law, has omitted to file various required annual foreign information returns. This is likely due to the fact the software is not a professional version and/or the taxpayer-preparer is not reading any of the software return’s diagnostics.

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Tax Due Dates & The FBAR: Get With The New Program Peeps!

Manasa Nadig

Remember all that excitement around the Surface Transportation and Veterans Health Care Choice Improvement Act? Yes, I bet you do! We talked about it here. So it is here- the new FinCEN Form 114 (aka FBAR) filing deadline!

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When Junior Has A Foreign Bank Account: What’s To Be Expected!

Manasa Nadig

I looked up my last blog post and realized I have not posted here since January! What a tax season it was, and how did time get away from me? Oh wait…I know how!

The past few years have seen a steady growth of a client base that has foreign accounts: no complaints there! Most clients have very routine FBAR filing requirements but then sometimes things are a little out of the ordinary and that gets me all excited…yes, I know..it does! That either tells you about my lack of a life during tax season or we should just notch it up to tax nerd-iness!

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Is This Canadian Baby An American Tax Cheat?

Is This Canadian Baby An American Tax Cheat?

A Canadian baby is learning about taxes, banking and activism at a tender age. The eight month old girl received a “Dear Valued Customer” letter from her Canadian bank when she was six months old advising her that her account information may be provided to Canada Revenue Agency to pass on to IRS.  The wee “Valued Customer” was directed to complete, sign and mail forms to the bank.

Baby Elle (not her real name) and her Canadian parents were Read more

Story of A Good Citizen Who Reports Foreign Bank Accounts But Forgets FBARs! Huh?

I have to say today’s blog post was triggered by a phone call a few weeks ago. The would-be client wanted to report his foreign bank accounts. Apparently, this good citizen had all his I’s dotted & T’s crossed – so to speak – so what was the problem you ask? I hate to say this, but it happens more than you would think. He did not know there were additional reporting requirements involved when it came to bank accounts in foreign financial institutions. (More on FBAR thresholds in my post here)

You have to know that the IRS will not impose a penalty for the failure to file the delinquent FBARs if you “properly” reported the foreign bank accounts on your US tax returns, and paid tax on the income from these accounts and have not been contacted by the IRS for an income tax examination or a request for the delinquent returns has not been made by them. Read more

New FBAR Deadline: Why This Is Great News?

This is what happened on the last day of July this year (2015): President Obama signed into law H.R. 3236, the Surface Transportation and Veterans Health Care Choice Improvement Act (The Act). An unlikely vehicle for deadline changes, but it did make some really important changes to Tax Law & Revenue Provisions, including:

1. FinCEN Form 114 (FBAR) filing and extension deadlines;
2. Tax Filing Deadlines;
3. Changes to consistent basis reporting between the estate and the person acquiring the property from the decedent.

Point #3 above modifies due dates for Trust returns: Foreign trusts with US Owners and Read more

Congress Changes Certain Returns Due Dates

Congress recently passed some legislation that changes the due dates of certain returns.  Partnership and S Corporation returns using a calendar year will be due on March 15 (two and one-half months after the end of the fiscal year). This is effective for tax years beginning after December 15, 2015.

C Corporation returns using a calendar year will be due will be due April 15 (three and one-half months after the end of the fiscal year). This is effective for tax years beginning after December 15, 2015 unless the fiscal year ends June 30, in which case it is effective for tax years beginning after December 31, 2025. Go figure.

The new law also changes the due date for the FinCEN Report 114 to April 15. Remember Read more

Recent Important Tax Changes

Introduction

The three month highway funding extension was passed by the House July 29 and by the Senate July 30. The president signed the bill into law on July 31. The law contains several important tax provisions changing the due dates for partnership and C corporation returns, FinCEN Form 114-Report of Foreign Bank and Financial Accounts (FBAR), several common tax returns and several other IRS information returns It also overrules the Supreme Court’s Home Concrete decision, requires that additional information be reported on mortgage information statements, and requires consistent basis reporting between estates and beneficiaries. Read more

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