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76/1 05 2016. /. / 05 2016. (FOREIGN ACCOUNT TAX COMPLIANCE ACT, FATWA)
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How to fill out foreign account tax compliance

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How to fill out foreign account tax compliance

01
Gather all the necessary information regarding your foreign accounts, such as account numbers, balances, and the names of associated financial institutions.
02
Determine if you are required to report your foreign accounts on the Foreign Bank Account Report (FBAR) form FinCEN Report 114. Generally, United States persons are required to file an FBAR if the aggregate value of their foreign financial accounts exceeds $10,000 at any time during the calendar year.
03
If you meet the reporting threshold, download the FBAR form from the official Financial Crimes Enforcement Network (FinCEN) website.
04
Fill out the FBAR form completely and accurately, providing all the requested information about your foreign accounts.
05
Ensure to include any required attachments, such as a separate sheet if additional account information is needed.
06
Review your FBAR form to double-check for any errors or omissions.
07
Sign and date the FBAR form.
08
Submit the completed FBAR form to the appropriate address provided in the form's instructions. Keep a copy of the form and any supporting documentation for your records.
09
If you have other foreign financial assets that need to be reported under the Foreign Account Tax Compliance Act (FATCA), consult a tax professional or refer to the instructions for Form 8938 to determine the reporting requirements and procedures.
10
Adhere to the annual filing deadline for FBAR and FATCA reporting, which is typically April 15th but can be extended to October 15th under certain circumstances.

Who needs foreign account tax compliance?

01
United States persons, including citizens, resident aliens, and certain non-resident aliens, who have a financial interest in or signature authority over one or more foreign financial accounts need to comply with foreign account tax compliance regulations.
02
Foreign corporations, partnerships, and certain trusts also need to comply if they are formed under the laws of the United States or have a principal place of business or trust administration in the United States.
03
It is important to consult with a tax professional or refer to the IRS guidelines to determine your specific obligations for foreign account tax compliance based on your individual circumstances.

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Foreign account tax compliance refers to the requirement for individuals and entities to report their foreign financial accounts to the IRS in order to ensure compliance with tax laws.
Any US person, including citizens, residents, and entities, with foreign financial accounts exceeding certain thresholds is required to file foreign account tax compliance.
Foreign account tax compliance is typically filed using Form FinCEN 114, also known as the FBAR form, or Form 8938, which is filed with the taxpayer's federal tax return.
The purpose of foreign account tax compliance is to prevent tax evasion by ensuring that taxpayers report their foreign financial accounts and assets accurately.
Taxpayers must report the maximum value of their foreign financial accounts during the year, the country where each account is located, and details about the account.
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