A hot button issue for IRS is the reporting of foreign bank and investment accounts by U.S. citizens and resident aliens. If you own an interest in or have signature authority for a foreign account, you may be required to file Form 114 (Report of Foreign Bank and Financial Accounts) annually by April 15 (April 18 in 2017) to report the value of the account(s). An extension is available until October 15, but it must be filed by April 15.
Who is required to file? Any U.S. citizen or resident (including corporations, partnerships and other entities) that owned an interest in or had signature authority for one or more accounts with an aggregate value of $10,000 or more at any time during the previous calendar year. This form is easily overlooked because it is not filed with your tax return. Also, U.S. resident aliens may be unaware of the filing requirement, which applies even if they are not required to file a U.S. tax return.
What happens if you have missed the April 15 filing deadline? There are potentially stiff penalties, but the government often waives them if you file within a reasonable period of time or have good cause for late filing.
Please contact us if you need assistance filing this form.