In this section, I will cover following foreign financial reporting requirement from USA tax law point of view.
- Form FinCEN 114: Form FinCEN 114, report of Foreign Bank and Financial Accounts, also known as Foreign Bank Account, or "FBAR"). If you are a US citizen or resident, you may need to file this form. Who Must File the FBAR? A United States person that has a financial interest in or signature authority over foreign financial accounts must file an FBAR if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year.
- Schedule B, Interest and Ordinary Dividends: This schedule is used to include interest and ordinary dividend. In the part III of the schedule require the taxpayer to disclose foreign accounts and trusts. Further in this section, taxpayer need to select the check box whether FinCEN 114 need to be filed or not.
- Form 8938 – Statements of Specified Foreign Financial Assets. Taxpayer need file this form 8938 to report taxpayer specified foreign assets if the total asset of the specified foreign assets in which taxpayer have an interest is more than the threshold.
- Form 5471, Information Return of U.S. Persons With Respect. To Certain Foreign Corporations. Certain U.S. citizens and residents who are officers, directors, or shareholders in certain foreign corporations file Form 5471 and schedules to satisfy the reporting requirements of sections 6038 and 6046, and the related regulations.
- Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business. Corporations file Form 5472 to provide information required under sections 6038A and 6038C when reportable transactions occur with a foreign or domestic related party.
- Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. U.S. persons (and executors of estates of U.S. decedents) file Form 3520 to report: (1) Certain transactions with foreign trusts, (2) Ownership of foreign trusts under the rules of sections Internal Revenue Code 671 through 679, (3) Receipt of certain large gifts or bequests from certain foreign persons.
- Form 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner. A foreign trust with at least one U.S. owner files these forms annually to provide information about: (1) the trust, (2) its U.S. beneficiaries, and (3) any U.S. person who is treated as an owner of any portion of the foreign trust.
- Form 2555, Foreign Earned Income. If you qualify, you can use Form 2555 to figure your foreign earned income exclusion and your housing exclusion or deduction. You cannot exclude or deduct more than your foreign earned income for the year.
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