If you have a financial interest in or a signature authority or other authority over any foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account you may want to pay close attention to this blog post. There is a deadline approaching.
According to the Bank Secrecy Act, if the aggregate value of your foreign account exceeds $10,000 at any time during the calendar year, you are required to file form TD F 90-22.1 with the IRS by June 30th (no extensions of time will be granted).
Penalties for non-willful non-compliance are up to $10,000. If non-compliance is willful, penalties may be up to the greater of $100,000 or 50% of account balances. Criminal penalties may also apply.
If the value of your account was $50,000 or more on the last day of the tax year or $75,000 or more at any time during the tax year, you may also be subject to Foreign Account Tax Compliance Act and additional reporting requirements.
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If you believe that any of these acts apply to you, please do not hesitate to call us.
Gabrielle Luoma, CPA
MOD Ventures is a Full Service Accounting Firm