by: Ashley Quinn
If you have ownership or signature authority in a foreign bank account, or foreign financial account, you may be subject to filing requirements with the Treasury Department. Treasury Department Form TD F 90-22.1 details information concerning foreign bank account ownership and/or signature authority for financial accounts in a foreign country with an aggregate value exceeding $10,000 any time during the calendar year.
Form TD F 90-22.1 is filed separately from your tax returns. If you have already separately filed Form TD F 90-22.1, you should ignore this notice.
The American Jobs Creation Act of 2004 imposes a civil penalty of up to $10,000 on any person who does not comply with the filing requirements, regardless of whether the lack of filing is willful or not.
More recently, the IRS sued the Swiss financial institution UBS in order to compel UBS to release the names of over 50,000 US citizens with Swiss bank accounts.
Additionally, on May 4, 2009, the Obama Administration proposed a substantial increase in the civil penalties for non-filing of the form.
Clearly, the federal government intends to be more aggressive about pursuing penalties in this area. The form can be accessed at the IRS website at http://www.irs.gov/pub/irs-pdf/f90221.pdf. Please read the instructions to the form and execute appropriately.
The IRS has changed the Form for the 2008 tax year. Accordingly, if you would like assistance completing this form, please contact us as soon as possible. The deadline for filing is June 30, 2009, and there is no formal provision under which this date can be extended.
If you are required to file, we very strongly urge you to file the Form via US Certified Mail, return receipt requested. US Certified Mail is a proof of delivery that the IRS and the US court system accept. FedEx does not constitute legal proof of delivery. A simple postmark also does not constitute legal proof of delivery.
FOREIGN ACCOUNT NON-DISCLOSURE
AMNESTY PROGRAM
The IRS has announced an amnesty program that applies to prior tax years. There are two categories of amnesty filers.
1) If you a) were required to file Form TD F 90-22.1 and have not filed, but b) did include all foreign account investment income in your US tax return(s), then there is no penalty for filing the prior years Form(s) TD F 90-22.1. However, in order to avoid any penalty in this case, you must file all delinquent Forms TD F 90-22.1 by September 23, 2009.
2) If you were required to File Form TD F 90-22.1, did not file it, and did not include your foreign investment income in your US tax return(s), then there is a special amnesty procedure. You should contact us immediately if you are in this category.
Should you have any questions whatsoever regarding the foreign financial account filing requirements, please contact us immediately (aqadmin@ashleyquinncpas.com).
SPECIAL INSTRUCTIONS
You may have to complete FORM 90-22.1 if you maintained a foreign bank account during 2008. This form is required to be filed if you had in excess of $10,000 outside the U.S. at any time during 2008.
Execution:
If you are required to file, the form should be completed, dated and signed.
Where to file:
U.S. Department of the Treasury
P.O. Box 32621
Detroit, MI 48232-0621
