Foreign Bank Account Reporting (FBAR) and Foreign Account Tax Compliance Act (FATCA) for US Persons
FinCEN and the IRS require “US Persons” to report their ownership or control over bank accounts and specified financial assets held outside the United States. Failure to properly and timely file required information in the Foreign Bank Account Report (aka FBAR) or on the Foreign Account Tax Compliance Act (aka FATCA) will expose the US Person to significant penalties.
US citizens by definition are US persons for income tax reporting purposes.
Non US Persons can become US Persons by election, or by presence in the US by being physically present over 120 days a year over a 3-year period. The effect is to cause the Non US Person to also have a US income tax filing requirement compliance.
Ownership of property with a value in excess of $60,000 USD cause significant US Estate Taxes to be due at death.
On many occasions, non-US citizens inadvertently become classified as US persons for tax reporting purposes because of their US business involvement or because of presence in the US.
Crest Key arms its clients with a real connection to relevant advice so that they understand the implications of being classified as a US Person and their reporting obligations for foreign bank accounts and specified foreign financial assets. In addition we prepare and confidently file all applicable FBAR and FATCA (which can accompany) forms for those clients who request our assistance.
We are legal, accounting, and business minds delivering exemplary service.