Dec. 11, 2013: As a part of our ongoing efforts to help US expats living overseas to understand and comply with US IR tax issues, we pass along updates as we become aware of them. In talking with various US expats, none of them were aware of the IRS’s “new” requirement to e-file FBAR information – in effect for 2012 and 2013 Treasury department filings – in effect since July 1, 2012. FBAR (Foreign Bank and Financial Account Reporting) rules requires Americans with foreign accounts and trusts worth more than an aggregate $10,000 US dollar value to file annual reports with the Treasury Department. http://www.fincen.gov/forms/e-filing/Efiling_FAQs.html
Since our previous FBAR reports on Fideicomisos, it is worth noting that in July 2013, the IRS decided that typical real estate Fideicomisos for Mexican properties do not require FBAR filings, as long as the OWNER DOES NOT RECEIVE ANY INCOME (no rental income) from the real estate trust/property. Still, if you are an expat married to a Mexicana, you may have Mexican bank accounts that have aggregate worth over the $10,000 limit, and hence are required by the US FinCEN (Financial Crimes Enforcement Network) to make annual e-filings in June with the US Treasury.
~ Filing at the BSA E-Filing website is FREE.
~ FinCEN granted a general exemption for mandatory E-Filing for the FBAR until June 30, 2013.
~ FBAR filers can start the process at: File an Individual FBAR – FinCEN BSA E-Filing System
~ The US IRS has kindly recognized “that some U.S. taxpayers living abroad have failed to timely file U.S. federal income tax returns or Reports of Foreign Bank and Financial Accounts (FBARs), Form TD F 90-22.1, but have recently become aware of their filing obligations and now seek to come into compliance with the law. ” As a result the IRS announced a “New Streamlined Filing Procedure” that includes being: “required to file delinquent tax returns, with appropriate related information returns (e.g. Form 3520 or 5471), for the past three years and to file delinquent FBARs (Form TD F 90-22.1) for the past six years.”
*sigh* So, it appears that if you do not owe anything, you can catch up on past omissions using their “new” systems.
* * * *
Feel free to copy while giving proper attribution: YucaLandia/Surviving Yucatan.
© Steven M. Fry
Read-on MacDuff . . .