If an individual has money in foreign banks, that has not previously been reported to the IRS and may be jointly held by another individual, what are the United States reporting requirements over those funds?
REPORTING REQUIREMENTS FOR THE US TREASURY
Anytime a US Citizen has an interest in monies held in foreign banking institutions with an aggregate value over $10,000.00, the citizen must report the funds to the IRS and the US Department of Treasury. This is true even when the citizen doesn’t hold any interest in the monies, but is merely a signatory on an account or accounts bearing the same aggregate value.
In order to remain complaint, the individual must file the financial report known as the Foreign Bank Account Report or FBAR using form 114. This form must be filed online using the BSA e-filing system accessible through the US Department of Treasury website at the following link: http://bsaefiling.fincen.treas.gov/main.html. This form must be filed by June 30 each year for the year proceeding. However, beginning with the 2016 report which will be filed in the calendar year 2017, the deadline for filing changes to April 15 of each year for the year proceeding.
In addition to the Form 114, an individual who either files jointly with another person, or has a third party complete the form for them must file a Form 114a, which is merely an authorization form.
It is also true that even when no taxable income has been earned in a calendar year from the monies in foreign accounts an FBAR must still be filed.
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