Wednesday, June 19, 2019
The IRS has been stepping up enforcement of foreign account reporting requirements, and therefore knowing when and what to report is vital. Either if you have a financial interest in or signature authority over a foreign financial accounts with an aggregate value exceeding $10,000 at any time during the calendar year, you must file FinCEN Form 114, “Report of Foreign Bank and Financial Accounts” (FBAR).
What is a foreign financial account? It is any financial account that is located outside of the United States, regardless of the nationality of the financial institution. Meaning that if the account is maintained by an American bank but within a branch outside of the country, it is a foreign financial account.
Anytime you designate another person to act on your behalf or transfer interests in your foreign financial account to other people or entities, you may trigger additional FBAR reporting obligations. If you own or control foreign financial accounts, consult your estate planning advisor to discuss your FBAR and other reporting obligations and their potential impact on your estate plan
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.