Tax Guides-Bambridge Accountants

1. Tax Guides — Bambridge Accountants 4/12/20, 4:33 PM COVID-19 UPDATE- Our online team of accountants are operating as usual. Contact us to file your personal taxes. × 7 HENRIETTA STREET, WC2E 8PS LONDON 020 3797 1432 BAMBRIDGE ACCOUNTANTS ABOUT US SECTORS SERVICES RESOURCES CONTACT Foreign Bank Account Reporting For US Citizens Whether you are living in the United States, or you are a US expat, if you have foreign bank and financial accounts you may need to report these to the IRS each calendar year. Both the FBAR and Form 8938 discussed below are part of the Foreign Account Tax Compliance Act (FATCA). In addition to you making reports, any financial institutions in foreign countries where assets are held will also be making reports back to the US about the account holder and who has an interest in or signature over the account. FOREIGN BANK ACCOUNT REPORT (FBAR) In addition to filing your US tax return each year, a separate report of foreign bank and financial accounts held is made to the US Treasury. The foreign bank account report (FBAR, or FinCEN form 114) is filed online using the BSA E Filing System. For each financial account that you hold, you check the highest balance on that account. You then add up the total highest balances and if they are $10,000 at any time or more then you need to file the FBAR. The financial accounts include bank accounts, savings accounts, investments, pensions in your name, in joint names and where you are a signatory. The FBAR (FinCEN 114) is due by April 15, 2020. If you don't meet this deadline, then you receive an automatic extension to October 15, 2020. If you do file the FBARs late, the penalties can be extreme - those currently start at $12,921. FORM 8938 IN YOUR US TAX RETURN As part of your US income tax return, you may also need to report any financial interest in a foreign account. The thresholds for form 8938 are higher than the FBAR, please see below: If you are living in the US • Single - more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year https://bambridgeaccountants.com/tax-guides-1#/foreign-bank-account-reporting-fbars Page 1 of 5

2. Tax Guides — Bambridge Accountants 4/12/20, 4:33 PM • Married filing jointly - more than $100,000 on the last day of the tax year or more than $150,000 at any time during the tax year • Married filing separately - more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year If you are living outside the US • Single - more than $200,000 on the last day of the tax year or more than $300,000 at any time during the tax year • Married filing jointly - more than $400,000 on the last day of the tax year or more than $600,000 at any time during the tax year • Married filing separately - more than $200,000 on the last day of the tax year or more than $300,000 at any time during the tax year The due date for form 8938 is the same as the tax return (you file the form as part of your 1040) - April 15, 2020 if you are living in the US, June 15, 2020 if you are an American overseas. Again, like the FBAR, penalties for not filing form 8938 are severe. Failing to file is $10,000 and this increases by $10,000 for every 30 days after the deadline (to a maximum penalty of $50,000). SUMMARY Hopefully this guide will help you to report your foreign bank accounts both on the FBAR and form 8938 if required. We are very happy to help with any questions and we can run through how to file your FBAR, form 8938 and US tax return. Our friendly team of IRS Enrolled Agents have specialized expat tax preparation experience to help expats around the world and walk you through what the next steps are – contact us today. BACK TO TAX GUIDES PREV / NEXT S T R E A M L I N E D F I L I N G P R O C E D U R E - C A T C H I N G U P W I T H U S R E T U R N S A C T O R S T A X G U I D E U S U S E X P A T S T A X G U I D E https://bambridgeaccountants.com/tax-guides-1#/foreign-bank-account-reporting-fbars Page 2 of 5

3. Tax Guides — Bambridge Accountants 4/12/20, 4:33 PM F O R E I G N B A N K A C C O U N T R E P O R T I N G ( F B A R S ) S E L F - E M P L O Y M E N T I N C O M E S U P P O R T S C H E M E U K C O R O N A V I R U S R E L I E F I F Y O U A R E E M P L O Y E D I N T H E U K C O R O N A V I R U S R E L I E F F O R E M P L O Y E E S I N T H E U S S E L F - E M P L O Y E D R E L I E F S F O R C O R O N A V I R U S I N T H E U S SECURE FILE DELIVERY OUR LATEST ARTICLES FOLLOW UP BLOG TO STAY UP TO DATE WITH ALL THE LATEST IN US AND UK TAXATION https://bambridgeaccountants.com/tax-guides-1#/foreign-bank-account-reporting-fbars Page 3 of 5

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5. Tax Guides — Bambridge Accountants 4/12/20, 4:33 PM Report a map error Report a map error Map data ©2020 Map data ©2020 Google ONLINE PAYMENT PORTAL https://bambridgeaccountants.com/tax-guides-1#/foreign-bank-account-reporting-fbars Page 5 of 5