The New Rules of Offshore Accounts
Crucial deadlines are approaching for millions of U.S. taxpayers who live abroad or have offshore financial ties.
For expatriates, the annual income-tax filing deadline is normally June 15, instead of April 15. In addition, all U.S. taxpayers with offshore accounts totaling more than $10,000 in 2014—regardless of where they live—have until June 30 to file FinCen Form 114, known as Fbar, a report giving details of the accounts.
Despite the prospect of stiff penalties for nonfiling that can claim 50% or more of an offshore-account balance, many people who probably should be filing the necessary forms aren’t doing so. The U.S. State Department recently raised its estimate of the number of U.S. citizens living abroad to 8.7 million from 7.6 million, not including military personnel—yet fewer than one million people a year file forms that are often required for routine foreign accounts.
Editor's Note: For more on FinCen Form 114, see this IM article.
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