Hey everyone, I am coming to you live from Washington DC. I am in the suburbs of Alexandria, Virginia. I'm out here visiting some family and of course, going to the IRS National Forum, which was held in Maryland. So, I learned a ton of interesting facts today and thought a Q&A session would be a great thing to hold. Answer any of your questions while I'm live here, where we are at the center of our government. One of the most interesting facts that I learned today is that they've actually changed the deadline if you have foreign bank accounts outside of the USA, where the balance is more than ten thousand dollars. You used to have to file a form called the FBAR (form 11). That form still has to be filed, but instead of being due in June, it's now due on April fifteenth. So, if you have any bank accounts with a balance of over ten thousand dollars in a foreign country, you do need to file that form along with your normal 1040 tax term due date of April fifteenth. A lot of other interesting things came up today, especially talking about the earned income tax credits and the due diligence for tax preparers. One of the things that I thought was really interesting was the lack of tax organizers by other CPAs. One of the things that we do to ensure that our clients are getting the best deductions is to have you guys fill out tax organizers. That way, we know what kind of questions and information you actually have, and what other additional deductions you might qualify for. This helps us in getting you the best and lowest tax rates for what you're doing. So, if anybody's got any questions live from DC, here to...
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Do foreign banks report to irs Form: What You Should Know
Use IRS Form 8821 to Report Foreign Earned Income The tax treaty between the United States and most countries in the world recognizes the foreign earned income exclusion. Under the tax treaty, you will need to report foreign income earned outside the United States to be excluded from income taxes. Foreign earned income includes income of every person or corporation that is: Paid by the person or corporation (or the estate of the person or corporation) to, or for the benefit of, nonresident aliens who are residents of the country of the payer's residence (and, if any, the territory of any other foreign country in which the person has an established place of business) on amounts that are not excluded from income by the terms of the treaty. Generally, a foreign earned income exclusion is available to persons who are resident in a nonresidential country of the United States or to foreign corporations. Generally, foreign earned income includes all income that is received and maintained outside the United States. The U.S. Department of the Treasury has a detailed description of the foreign earned income exclusion and limitations and the tax treaty with foreign countries in their brochure, How Do I Claim the Foreign Earned Income Exclusion and How to Claim a Foreign Tax Credit for Filing U.S. Income Tax Returns? Use IRS Form 8889 (Reporting Foreign Bank and Financial Accounts for the United States) The IRS Form 8889 is used by banks and financial institutions to report their foreign financial accounts and report related accounts to the United States Treasury for tax purposes. Form 8889 is used by banks and financial institutions to report their foreign financial accounts and report related accounts to the United States Treasury for tax purposes. Use IRS Form 8938 (Foreign Bank and Financial Accounts) The tax treaty between the United States and most countries in the world recognizes the foreign bank account exclusion. Under the tax treaty, U.S. tax must not be paid from any foreign financial accounts by individuals whose total income earned or derived from such accounts in the United States does not exceed 100,000 during the taxable year. This exclusion is available even if the individual is a U.S. resident alien who is not a corporation or partnership and if the payer is a foreign financial account. Foreign bank and financial account accounts include any foreign financial accounts maintained for personal, family, or household use that does not have a U.S. branch or offices.
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