U.S. Citizens and Resident Aliens Abroad

TAX NEWS

The Form 8938 (Statement of Specified Foreign Financial Assets) should be filed by taxpayers with specific types and amounts of foreign financial assets or foreign accounts.  It is important for taxpayers to determine whether they are subject to this new requirement because the law imposes significant penalties for failing to comply.

Form 8938, the instructions, regulations implementing this new foreign asset report, and other information to help taxpayers determine if they are required to file Form 8938 is available on the web at:
http://www.irs.gov/businesses/corporations/article/0,,id=236667,00.html . 

If you are a U.S. citizen or resident alien, the rules for filing income, estate, and gift tax returns and paying estimated tax are generally the same whether you are in the United States or abroad. Your worldwide income is subject to U.S. income tax, regardless of where you reside.

The American citizens living abroad can now file their taxes for free using IRS software.

Information about tax issues

Foreign Bank Accounts:

Many Americans living abroad set up a foreign bank account to facilitate living in the host country.  If you  had signature authority of a foreign bank account, brokerage account, mutual fund, unit trust or other financial account which contained  the U.S. Dollar equivalent of $10,000 or more at any time during the year you must file a filing Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR).  This form is an information report and does not require the payment of any tax.  It is required even if the account does not earn any income. 

The FBAR is required to be received by June 30 of each year.  It is NOT filed with your tax return but you should check box 7a and b on Form 1040, Schedule B, as well as filing Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR).  Extending the time to file your tax return will not extend the time to file the FBAR. 

The FBAR form is available here. (PDF 8 KB) Please mail the Form TD F 90-22.1 before June 30th to:

By mail to:
U.S. Department of the Treasury
P.O. Box 32621
Detroit, Michigan 48232-0621 U.S.A.

By courier delivery to:
IRS Enterprise Computing Center
ATTN: CTR Operations Mailroom, 4th Floor
985 Michigan Avenue
Detroit, Michigan 48226 U.S.A.
Telephone: [+1] (313) 234-1062

More information can be found at:

• Report of Foreign Bank and Financial Accounts
• International filers due dates and mailing addresses (PDF 16 KB)
• International revenue service (PDF 11 KB)