Report of Foreign Bank and Financial Accounts
Do you or your company have a bank account in a foreign country? If so you may be required to file an information return with the IRS by June 30, 2011. Failure to do so could result in severe penalties.
This rule applies to all U.S. persons whom are defined as individuals, corporations, partnerships, trusts or estates and joint ventures who own oversea financial accounts exceeding $10,000.
Financial accounts mean financial interests in, signature and other authorities over any financial accounts, including bank, securities or other types of financial accounts, in a foreign country, if the aggregate value of these financial accounts exceeds $10,000 at any time during the calendar year.
Filing deadline is June 30. The Report of Foreign Bank and Financial Accounts is not an income tax return, and, unlike with federal income tax returns, requests for an extension of time to file a Report are not granted.
Penalty: for non-willful violation can range up to $10,000 per violation. Willful violation can range up to the greater of $100,000 or 50% of the amount the financial account to $500,000 fine or/and 10 years imprisonment.
Who is exempted from filing: Non-U.S. residents (pay attention to the actual number of days you stay in the U.S. You may be classified as resident depending on the time you stay in the U.S.), an officer or employee of a publicly traded U.S. Corporation with assets over certain amount and certain numbers of shareholders.
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