U.S. Tax & FBAR/FATCA for Expatriates

Unique to a typical U.S. tax filing:

Many foreign expatriates, all U.S. citizens & Green Card holders are required to report all worldwide income. Foreign and U.S. expatriates are entitled to, but not limited to following unique
tax breaks under conditions:
  • Form 2555 - Foreign Income exclusion & Foreign Housing Exclusion
  • Form 8233 - Tax treaty exemptions and exclusions (i.e. IRS form 1040NR for F-1 J-1 visa holders)
  • 1116 - Foreign Tax Credits and other offsets (IRS form 1116)
  • Form 5471 – Information form Return of U.S. Persons With Respect to Certain Foreign Corporations
  • Form 926 - Filing Requirement for U. S. Transferors of Property to a Foreign Corporation
  • From 8865  – Return of U.S. Persons With Respect to Certain Foreign Partnerships
  • Form 3520A/3520 – Certain foreign pensions and trusts and gifts require one or both forms
  • Form 5472 – Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business (confused yet?)
  • Form 8621 - Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund.

In addition to your annual US tax return filling responsibility, if you are a US person have a foreign bank or are a signatory on a foreign bank account, you are required to file a report

called FBAR or FinCEN Form 114 (formally Known as TD F 90-22.1).  This is a separate filling from you tax return, with an independent filling date of June 30 with no extensions granted.

Generally, you have to file an FBAR if you meet the following requirements:

You are a United States “person” (which can include residents in the United States on a visa);
  • You have a “financial interest” in, or “signatory authority” over any “financial account” in a foreign county or jurisdiction; and
  • The total value of all such foreign accounts exceeds $10,000 at any time (even for a day!) in a given year.

FBAR: Also for U.S nationals & Green Card holders, federal tax regulation stipulates "Report of Bank and Financial Accounts" owned outside of U.S. and its territories. The broad scope
of financial assets can range from oversea bank deposit accounts, overseas stock, mutual fund and bond holdings, to financial interests in private overseas corporations and partnerships. 
A stiff penalty could be imposed for noncompliance.  Further federal regulations mandate its dual declaration requirement: On IRS form 8938 and separately a direct report at the Treasury department website.   

Questionnaires are available to our expat clients upon request.  It will provide us with most information in need to complete tax filing.  In most cases, services offered to expats can be
performed remotely. Your infomation will be kept confidential.   

If there are any questions, please email or contact us and we will respond promptly.

We strongly encourage overseas expats verifying your accountants prior to sending any confidential personal tax information

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