Yesterday, the IRS released a tax tip pertaining to the upcoming June 15  deadlines for U.S. citizens living abroad and foreign financial accounts. The reminder provides basic instructions for taxpayers who might be affected by the Foreign Account Tax Compliance Act (FATCA) and the Foreign Bank and Financial Accounts Report (FBAR), which - if applicable - might require the filing of Forms 8938 and 114, respectively.

FATCA requires taxpayers to "report the existence of and income from foreign accounts." The following types of account are specifically mentioned:

• Trust
• Bank
• Securities

It's noted that submitting a Form 8938 to report FATCA-affected accounts is considered part of filing a standard tax return, and instructions can be found here.

FBAR, which has a June 30 filing deadline, is "not part of filing a tax return;" however, if foreign accounts have an aggregate value of more than $10,000 U.S., the taxpayer must file a Form 114 electronically.

To read the full article, click here.

Source: Internal Revenue Service