FBAR & FATCA

Are you a US citizen and resident? Do your financial assets consist of foreign financial accounts and foreign non-account assets with the purpose of investment? You would need to file your income returns to IRS on Form 8938. FATCA reporting is required for foreign investment financial and non-financial assets, including foreign financial instruments, foreign stocks and securities, contracts with non-U.S. individuals, and interests in foreign entities.

You need to file tax under FATCA if you are:

• An unmarried individual with foreign financial assets ( as mentioned above) total value of $50,000 or above on the last day of the tax year or with a total value of $75,000 or above at any time during the tax year.
• Filing a joint income tax return as a married individual with foreign financial assets ( as mentioned above), the total value of $50,000 and more on the last of the year. Or, if you have assets of $75,000 or above at any time during the year.

Foreign Bank Account Report (FBAR) needs to be filed by US citizens and residents who have a financial interest or signature authority over foreign financial accounts. You will come under tax regiment if the total value of the foreign financial accounts is $10,000 or above at any time during the calendar year.

Department of the Treasury needs to receive your FBAR filing on or before April 15th of the immediately following year of the calendar year— for which you are filing FBAR.