Do you have financial accounts in a foreign country? If so, you are required to report your foreign financial asset holdings annually both to the IRS and the Treasury Department. You will be subject to penalties up to 50% of your account balance if you fail to report these assets. Your chances of being caught have increased as the IRS has reached agreements to start receiving data electronically from more than 145,000 foreign financial institutions. Examples of financial accounts include: Savings, deposit, checking, and brokerage accounts held with a bank or broker-dealer.
The IRS has also determined that any funds in Online Poker accounts are considered foreign financial assets. The IRS return is due with your individual income tax return filing, while the Treasury Department return is due by June 30th of each year and no extensions are granted.
Be sure to let your Alerding CPA Group tax advisor know if you had foreign financial assets totaling more than $10,000 at any time during 2014 so that you can file all the proper returns on time and avoid these huge penalties. If you file for an extension of your individual income tax returns, be sure to provide the information by June 15th to meet the Treasury Department deadline. Visit our website: www.alerdingcpagroup.com.