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Another IRS deadline: report your offshore accounts

Real Estate Tax Talk

Everybody knows that April 15 is an important tax deadline. But there is another tax deadline that is not so well-known: June 30. This is the date by which all U.S. citizens must file a Report of Foreign Bank and Financial Accounts (Form TD F 90-22.1) with the U.S. Internal Revenue Service to report offshore bank accounts. That's right: offshore bank accounts. In recent years the IRS has aggressively pursued taxpayers involved in abusive offshore transactions. Some taxpayers have tried to avoid or evade U.S. income tax by hiding income in offshore banks, brokerage accounts, or through the use of nominee entities (companies formed by banks or other organization to hold assets as a custodian on behalf of owners). Taxpayers also evade taxes by using offshore debit cards, credit cards, wire transfers, foreign trusts, employee-leasing schemes, private annuities or insurance plans. To help prevent such abuses, the filing requirement for foreign bank and financial accounts was ...