Prepare Now for Foreign Account Tax Compliance Act (FACTA) Reporting

1:33 pm Uncategorized

Earlier this year Congress passed the Foreign Account Tax Compliance Act (FACTA), which imposes stricter IRS filing requirements on those who have overseas assets of more than $50,000.

While CPAs and tax advisors still await direction from the IRS on compliance, those taxpayers who must now abide by the new FACTA rules should be aware of the additional reporting they will need to do to comply.  And in some cases, it may be duplicate reporting.

For example, if you have more than $10,000 in an offshore bank account, you were already filing a Report of Foreign Bank and Financial Accounts with the IRS.  If you have more than $50,000, you will have to report it separately on your 2010 return.

If you own foreign real estate, you will also need to file a new FACTA form in addition to the IRS forms you may have already been filing if the real estate was held by a foreign corporation or partnership.  And, if you have a family villa outside the U.S. that is owned by several family members, the property must be valued and if that value exceeds the $50,000 limit per person, it will need to be reported to the IRS.

If the new FACTA reporting rules have your head spinning, don’t worry.  Contact a California asset protection attorney to learn what the new rules may mean for you and your estate.

Let our Costa Mesa law offices help you get started by contacting us today.

Leave a Comment

Your comment

You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Please note: Comment moderation is enabled and may delay your comment. There is no need to resubmit your comment.