It looks like the tax law passed late last year imposed a new reporting requirement for those with foreign financial assets above $50,000 in 2011. This form is different from the FBAR form that we are familiar with (it comes into play if you've had more than $10,000 in foreign accounts at any point during the year).
As if the existing reporting requirements aren't enough, this is a new one to deal with in 2011 (and going forward)!
New requirement on reporting foreign accounts?
New requirement on reporting foreign accounts?
By the way, this is the article I saw this in. It's from WSJ summarizing the tax changes for 2011.
http://finance.yahoo.com/taxes/article/111792/tax-changes-for-2011-a-checklist?mod=taxes-advice_strategy
http://finance.yahoo.com/taxes/article/111792/tax-changes-for-2011-a-checklist?mod=taxes-advice_strategy
New requirement on reporting foreign accounts?
Every foreign financial institution is encouraged to enter into an agreement with the United States that would require it to:
- Obtain information regarding each holder of each account to determine if the account is a U.S. account;
- Comply with verification and due diligence procedures set by the United States;
- For every U.S. account, annually report to the IRS information regarding account holder, balances, income and withdrawals;
- Withhold 30 percent on all payments to recalcitrant account holders and to other foreign financial institutions that have not entered into such an agreement;
- Provide any other information regarding the account requested by the United States and;
- Insist that the owners of U.S. accounts waive local bank secrecy laws, and close the accounts of those who refuse to do so.
Those foreign financial institutions that refuse to enter into such an agreement are subject to withholding of 30 percent on all payments to them of U.S. source dividends, interest and similar investment income, and on the gross proceeds of all sales of U.S. securities and other assets that produce interest or dividends.
thanks
Please read COC about URLs - Admin
- Obtain information regarding each holder of each account to determine if the account is a U.S. account;
- Comply with verification and due diligence procedures set by the United States;
- For every U.S. account, annually report to the IRS information regarding account holder, balances, income and withdrawals;
- Withhold 30 percent on all payments to recalcitrant account holders and to other foreign financial institutions that have not entered into such an agreement;
- Provide any other information regarding the account requested by the United States and;
- Insist that the owners of U.S. accounts waive local bank secrecy laws, and close the accounts of those who refuse to do so.
Those foreign financial institutions that refuse to enter into such an agreement are subject to withholding of 30 percent on all payments to them of U.S. source dividends, interest and similar investment income, and on the gross proceeds of all sales of U.S. securities and other assets that produce interest or dividends.
thanks
Please read COC about URLs - Admin
New requirement on reporting foreign accounts?
This article from irs.gov gives Form number 8938 and other details, but it looks like this is starting from Jan 1 2011. Please check.
http://www.irs.gov/businesses/corporations/article/0,,id=236667,00.html
It also has issues some notices about revised versions of these forms.
http://www.irs.gov/businesses/corporations/article/0,,id=236667,00.html
It also has issues some notices about revised versions of these forms.