US Taxpayers with Foreign Assets – June 2013 Tax Deadlines

U.S. citizens and resident aliens, including those with dual citizenship who have lived or worked abroad during all or part of 2012, may have a U.S. tax liability and a filing requirement in June of 2013.

June 17, 2013 – Tax Returns to U.S. Citizens and Resident Aliens Living Overseas; May Also Apply to Nonresident Aliens

The first filing requirement deadline is Monday, June 17, 2013. This deadline applies to U.S. citizens and resident aliens living overseas, or serving in the military outside the U.S. on the regular due date of their tax return. Eligible taxpayers get two additional days because the normal June 15 extended due date falls on Saturday this year. In order to use this automatic two-month extension, taxpayers must attach a statement to their return explaining which of these two situations applies.

Nonresident aliens who received income from U.S. sources in 2012 also must determine whether they have a U.S. tax obligation. The filing deadline for nonresident aliens can be April 15 or June 17, 2013, depending on sources of income.

Worldwide Income Should Be Reported; Form 8938 and Schedule B

Remember that US federal law requires U.S. citizens and resident aliens to report any worldwide income, including income from foreign trusts and foreign bank and securities accounts. In most cases, affected taxpayers need to fill out and attach Schedule B to their tax return. Certain taxpayers may also have to fill out and attach to their return Form 8938, Statement of Foreign Financial Assets.

Part III of Schedule B asks about the existence of foreign accounts, such as bank and securities accounts, and usually requires U.S. citizens to report the country in which each account is located.

Generally, U.S. citizens, resident aliens and certain nonresident aliens must report specified foreign financial assets on Form 8938 if the aggregate value of those assets exceeds certain thresholds. Instructions for Form 8938 explain the thresholds for reporting, what constitutes a specified foreign financial asset, how to determine the total value of relevant assets, what assets are exempted and what information must be provided.

June 30 (June 28), 2013 – TD F 90-22.1 (FBAR)

Separately, taxpayers with foreign financial accounts whose aggregate value exceeded $10,000 at any time during 2012 must file Treasury Department Form TD F 90-22.1 (also known as “FBAR”). This is not a tax form and is due to the Treasury Department by June 30, 2013 – it is important to emphasize that the form must be RECEIVED by June 30, NOT mailed.

Due to the fact that June 30 falls this year on a Sunday, it means that, realistically, the taxpayers should aim to make sure that the IRS received the 2012 FBARs by June 28.

Contact Sherayzen Law Office for Help With Your International Tax Obligations

If you have foreign accounts or foreign income, contact Sherayzen Law Office to make sure that you are in full compliance with your US tax obligations. Our experienced tax firm can assist you with all types of IRS international tax obligations.