foreign asset reporting requirements

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Venar Ayar - Foreign Assets Reporting Requirements

Understanding Foreign Asset Reporting

US tax code can be very confusing. This is especially true when it comes to reporting foreign assets. The IRS has a number of complex regulations regarding foreign assets and how they are reported, any of which can cause headaches for those filing. To give you some insight into the FBAR and other relevant forms, here is Ayar Law’s guide to foreign asset reporting requirements.

Foreign Asset Reporting Forms

The Internal Revenue Service has a variety of forms when it regards foreign asset reporting. The most common of these forms are:

Form 3520 – Foreign Trust and Gifts
Form 3520-A – US Owner of a Foreign Trust
Form 5471 – Foreign Corporation
Form 8865 – Foreign Partnership
Form 8621 – Passive Foreign Investment Company
Form 8938 – Specified Foreign Assets
FBAR – Report of Foreign Bank and Financial Accounts (also known as FinCen 114)

Written by Venar Ayar | Posted in Foreign Asset Reporting • TaxConnections

America doesn’t really need skilled immigrants, or does it?

Clearly a potential immigrant to the U.S. with assets in the home or a third country would have to have a special kind of insanity to subject himself to this system with all the paperwork and potential for double-taxation. And it would do this person absolutely no good whatsoever to become a U.S. citizen since this would change nothing. On the contrary, being a citizen would actually make it worse – one might shed a Green Card relatively easily (if done before the immigrant acquired too many assets in the U.S. or abroad) but U.S. citizenship is forever unless one renounces.

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Written by John Richardson | Posted in Citizenship • Exit Tax • United States