In case you are the holder of an account or possesses signature authority over any international bank account, mutual funds, savings account, unit trusts, etc., it may be possible that you would be asked to report the account details on an annual basis to the United States Department of Treasury. Also remember that under the Back Secrecy Act, each person residing in the US should file a report on foreign bank accounts they have in their possession. They can also opt for filling up form-114 or FinCEN. But you should file this form only when the combined total of your foreign financial accounts is a minimum of $10K.
As a person residing in the US, you should note that Form-114 is necessary to submit in the United States Department of Treasury. In case you fail to submit this form, you would be penalized heavily along with the possibilities of criminal prosecution.
In addition to Form-114, you would be required to file FATCA if you meet any of the following conditions:
- You reside in the USA, you are filing tax as a single individual and you possess foreign assets valuing more than $50K on the final day of the financial year. You would also be required to file FATCA if the values of your foreign assets have reached $75K at any point of time.
- You are a US expat who lives abroad, you are filing taxes as a single individual and you have foreign assets whose value is more than $200K on the final day of the financial year. You would also be required to file FATCA if the value of your foreign assets has reached $300K at any point of time.
- You reside in the US, you are filing a joint return with your spouse and you now have foreign assets that have an aggregate value of $100K at the end of the financial year, you would be needed to file this form. In case the value of foreign assets has reached $150K, you also be required to file FATCA.
- For the sole aim of filing FACTA, the term you would normally associate with foreign assets comprises more than your financial accounts. That’s why it is important that you report all profits and losses experienced from the assets you have abroad.
- If you are an US expat living abroad and you wish to file a joint return with your spouse, you would be required to fill FATCA.
