The
JacobsReport
is a free email newsletter that will discuss investment, business, tax
and financial planning in an international context. Reports will be
issued
as the author's work schedule permits, but will usually be issued on a
weekly schedule.
Foreign
Financial Accounts
Report Due by June 30th
Taxpayers
who have signature
authority over a foreign financial account, or who have a financial
interest in
a foreign financial account, are required to disclose the name of the
bank or
financial institution, the country, the account number and the
approximate
amount in each foreign account. No reports are required if the
aggregate value
of all foreign accounts held by a taxpayer is $10,000 or less. The form
to be
used is TD F 90-22.1 which can be obtained at the IRS web site at http://www.irs.gov/app/scripts/retriever.jsp
A
penalty of up to $10,000
may be imposed by the IRS for a non-willful failure to file the form.
It is not
clear whether the penalty can also be imposed for filing the report
after the
June 30 deadline. However, there is no procedure for securing an
extension of
time to file and the due date for this form is not connected with the
due date
for filing a personal or corporate income tax return.
Further
information is
available at http://www.offshorepress.com/AICPA/formtdf90221.htm
Answers
to more than 50
questions about this form have been compiled into a 60 page report
called the “2006 Guide to Reporting Offshore Financial
Accounts”. Digital copies of the report are available for just $16
if
purchased online. For details see http://www.offshorepress.com/fbar.htm
Vern Jacobs