Federal Tax, Tax

How to Report Foreign Financial Assets to the IRS


Are you subject to the Foreign Account Tax Compliance Act (FATCA)? You may be if you own foreign financial assets valued at more than $50,000 aggregate. Certain taxpayers must report these holdings annually to the IRS, using Form 8938. But the reporting threshold is generally higher for married taxpayers who file jointly and people living abroad (ask your tax advisor). Don’t confuse FATCA filings with the obligation to file a Report of Foreign Bank and Financial Accounts (FBAR). U.S. individuals and entities with financial interests in (or signatory authority over) offshore accounts valued over $10,000 must file FBARs with the Treasury Department’s Financial Crimes Enforcement Network. Questions? Contact the Cg Team © 2023