If you’re unfamiliar with filing taxes, filing taxes related to foreign bank accounts could pose several problems. When filing your taxes for a foreign bank account, it’s important to ensure you’re compliant with all tax regulations that apply to you.
U.S. citizens that possess a foreign bank account should report their foreign accounts by April 15 of the next calendar year. Based on the Bank Secrecy Act of 1970, foreign bank account tax should be filed if the aggregate foreign account balance exceeds $10,000 at any time during the calendar year.
If you’re not sure about how to file these kinds of taxes, don’t wait to receive a notice or surprise tax bill from the Internal Revenue Service as a result of incorrect filing of tax returns. So that you remain compliant, San Diego CPA can assist in foreign account tax preparation.
Why taxes for a foreign bank account are filed
Any U.S citizen that has money in a foreign bank account should understand the tax ramifications of these accounts. The U.S government taxes citizens on income earned within the country, as well as income from foreign countries. This is because foreign countries may not have strict tax reporting requirements as those used by financial institutions in the United States.
Money in a foreign bank account presents different tax liabilities to a U.S-based bank account. If you ignore tax foreign income tax liability, you could be charged with a criminal offense and get five-year imprisonment or face stiff penalties from the IRS. If you don’t want global tax issues to affect your foreign finances, you can get help from one of our CPA consultants.
Consult San Diego CPA for foreign bank account tax filing
If you need assistance with filing foreign bank account taxes, consult with Abbo Tax CPA LLC. With extensive experience in tax services, while ensuring taxpayers remain compliant with IRS foreign account reporting laws, we will help you avoid tax penalties resulting from a failure to file taxes or from errors associated with foreign bank accounts.
To get started, contact CPA San Diego to schedule a confidential consultation. We recognize the complexity that comes with the reporting requirements of foreign bank accounts and can help you manage your taxes.
