FATCA, FBAR and FinCEN. We deal with the acronyms, so you don’t have to.
Did you know there are multiple forms to fill when you have overseas bank accounts?
In addition to filing FBAR Form114 to FinCEN (U.S. Department of Treasury) annually, you may also need to file FATCA’s Form 8938 with your expat American Federal Tax File. FATCA stands for the Foreign Account Tax Compliance Act of 2010 and requires any individual or business with foreign accounts and who meets the reporting threshold of an aggregate of greater than US$50,000 to file a Form 8938 with their tax return. The Act effectively closed the loophole that made it difficult for the IRS to track down ‘willful’ non-filing of FBARs.
The two forms have different thresholds and instructions for reporting, confusing if it is your first time or only thinking about it once a year. At Mir Taxes, we have the knowledge and experience to distinguish between the two and ensure your reporting is filed on time and with accuracy.
Reporting requirements for Form 8938 are separate from the reporting requirements for the FinCEN Form 114, and different information may be required.
We can advise on your situation and ensure all documents are filed. Fulfilling your tax reporting obligation is easy when you choose Mir Taxes as your tax partner. We exist to make your life abroad as an Expat American citizen an enjoyable one.
Book a free 15-minute consultation to discuss how we can help you file on time and with accuracy.
Why work with Mir Taxes
Common questions we are asked about filling an FATCA:
When we file form 8938 on your behalf, we will go through the complete list of financial investments with you and ensure all are filed accurately on time. There are several categories of investments which you may have to report on, and we have listed some of them below.
- Financial (deposit and custodial) accounts held at foreign financial institutions
- Foreign financial account for which you have signature authority
- Foreign stock or securities not held in a financial account
- Foreign partnership interests
- Foreign Mutual Funds
- Foreign accounts and foreign non-account investment assets held by foreign or domestic grantor trust for which you are the grantor
- Foreign-issued life insurance or annuity contract with a cash-value
- Foreign hedge funds and foreign private equity funds
The only exemption to filing a Form 8938 for individuals living outside of the U.S is if you do not have to file an income tax return. You may also be exempt, however, if you do not meet the reporting thresholds on the value of your overseas accounts and investments. We can help you decide if you are required to file or not and file the form on your behalf.
Yes, you can be fined anywhere between US$10,000 and US$50,000 for not filing Form 8938 if required to do so. There are also penalties for underpayment of tax resulting from non-disclosed overseas financial assets, including criminal penalties. Contact us to discuss your circumstances and how you can avoid fines.
Remaining compliant with overseas financial reporting is easy when you choose Mir Taxes. Book an appointment today to discuss your needs.