Taxpayers With Foreign Assets Reminded of Filing Deadlines and Requirements

An IRS news release (IR-2014-52, 4/11/14) reminds U.S. citizens and resident aliens, including those with dual citizenship who have lived or worked abroad during all or part of 2013, that they may have a U.S. taxpayer liability and a filing requirement in 2014.

The filing deadline is 6/16/14 for U.S. citizens and resident alien taxpayers living overseas, or serving in the military outside the U.S. on the regular due date of their tax return. Eligible taxpayers get one additional day because the normal June 15 extended due date falls on Sunday in 2014.

Nonresident alien taxpayers who received income from U.S. sources in 2013 also must determine whether they have a U.S. tax obligation. The filing deadline for nonresident aliens can be 4/15/14 or 6/16/14, depending on sources of income.

The IRS notes that federal law requires U.S. citizens and resident aliens to report any worldwide income, including income from foreign trusts and foreign bank and securities accounts. In most cases, affected taxpayers need to fill out and attach Schedule B to their tax return. Certain taxpayers also may have to fill out and attach Form 8938, “Statement of Foreign Financial Assets.”

In addition, taxpayers with foreign accounts whose aggregate value exceeded $10,000 at any time during 2013 must file the new Financial Crimes Enforcement Network (FinCEN) FBAR Form 114, “Report of Foreign Bank and Financial Accounts,” which replaces TD F 90-22.1. Form 114 is due to Treasury by 6/30/14, must be filed electronically, and is available only online through the BSA (Bank Secrecy Act) E-Filing System website.

If you need assistance with determining whether or not these compliance obligations apply to you contact our firm or another experienced tax professional with international tax expertise.