FBAR/FATCA Processing

FBAR/FATCA Processing

The individuals who hold a foreign bank account or possesses signature authority at any foreign bank account, savings account, mutual funds, unit trusts, etc., may required to report the account details to the United States Department of Treasury on an annual basis. Under the Act of Bank Secrecy, everyone who is residing in the US should file an FBAR (Foreign Bank Accounts Report). If the combined total assets of your foreign financial accounts is more than $10k, then you have to file Form 114 to submit the returns to the United States Department of Treasury. The individuals who fail to submit the FOrm-114 would be penalized heavily and also results in criminal prosecution.

Along with the Form-114, you are also required to file FATCA in case you come under any of the following conditions.

• If you are residing in the USA and you are filing the tax returns as an individual and you possess foreign assets valuing more than $50k or have reached $75k at any point of time during the financial year, you are required to file FATCA.
• If you are a US ex-pat living in abroad and you are filing tax returns as an individual and you have foreign assets valuing more than $200k or have reached $300k at any point of time during the financial year, you are required to file FATCA.
• If you are a US resident and you are filing a joint return with your family or spouse and you posses foreign assets valuing more than $100k or have reached $150k at any point of time during the financial year, you are required to file FATCA.
• If you are a US ex-pat living abroad and you wish to file a joint tax return with your family or spouse, you are required to file FATCA.