If you’re a U.S. taxpayer with financial accounts or assets outside the United States, you may need to comply with two important reporting requirements: FBAR (Foreign Bank Account Report) and FATCA (Foreign Account Tax Compliance Act).
FBAR is a report you must file if you have foreign bank accounts that, in total, exceed $10,000 at any point in the year.
You file FinCEN Form 114 electronically by April 15 (with an automatic extension to October 15).
It helps the government prevent money laundering and tax evasion.
FATCA requires you to report foreign financial assets (bank accounts, investments, etc.) to the IRS if their value exceeds certain thresholds (e.g., $50,000 for single filers).
You report these assets on Form 8938 along with your regular tax return (due April 15, extension available).
FATCA aims to prevent U.S. taxpayers from hiding assets in foreign accounts.
