TAXESUSA

Foreign Account Reporting Instructions

 

We are required to inform you that you may have an obligation to report the value of any foreign, non-US based, accounts you have to the U.S. Treasury Department. The foreign account report, known as the FBAR, is required if the high value of all of your foreign accounts together exceeds the foreign currency equivalent of $10,000 or 9.490 € at any time during 2016. You are subject to significant penalties for failure to report. Your 2016 FBAR must be filed by 15 April 2017; however an automatic extension to 15 October 2017 is granted. No extension request is necessary.

The FBAR must be electronically filed. You may go to the U.S. Treasury Department web page and file the FBAR yourself. We encourage you to do this. You can begin the process by going to this link:

http://bsaefiling.fincen.treas.gov/NoRegFBARFiler.html

Report all foreign bank and investment accounts, even those that do not earn interest or dividends, as well as life insurance and pensions such as Riester Rente that have current cash value. If an account is owned jointly you must provide the number of joint account holders, and the name, address and SSN or ITIN of the primary joint account holder. You must report the name and address of the financial institution, the account number, and the high balance during 2016 for each account.

Account values must be reported in dollars. If you are e-filing your own report you must divide the Euro amount by 0.9490 to get dollars. This is the official Treasury Department exchange rate on the last day of 2016. Note that the rate shown above is different from the conversion rate used for your 2016 tax return. The end-of-year rates for other foreign currencies are at this link:

http://www.fiscal.treasury.gov/fsreports/rpt/treasRptRateExch/
currentRates.htm

If you want us to prepare and e-file your FBAR, we will do this for a fee. The fee begins at 100,00 € plus MWSt for one account plus 25,00 € for each additional account to be reported. You must request from us a Form 114a, Record of Authorization. Sign and return that form along with your account information.

If the total value of all of your foreign accounts exceeds the foreign currency equivalent of $200,000, notify us when you send your tax information. Additional reporting may be required with your 2016 U.S. income tax return.