FBAR & FATCA Compliance
All U.S. Citizens and Resident Aliens are required to file a "Report of Foreign Bank and Financial Accounts (FBAR)" using Form TD F 90-22.1 with the IRS under the Bank Secrecy Act regulations issued by the Financial Crimes Enforcement Network. This filing is necessary each year if the taxpayer has a financial interest or signature authority over foreign financial accounts, such as bank accounts, securities, or other financial assets, and the total value of these accounts exceeds $10,000 at any point during the calendar year (January 1st to December 31st). The deadline for filing the FBAR is April 15th.
Additionally, if a taxpayer holds more than $50,000 in foreign assets, including bank accounts, securities, or deposits, they must report it to the IRS. The Foreign Account Tax Compliance Act (FATCA) requires this reporting, which is done using Form 8938 and must be submitted along with the taxpayer's income tax return by April 15th..
