Hello and welcome to Sherayzen Law Office Video blog. My name is Eugene Sherayzen and I’m an international tax attorney and owner of Sherayzen Law Office, Ltd.
Today, I am continuing my series of blogs from Mexico City. In the previous blog, I talked about FBAR, Form 8938, Form 8621 and Schedule B reporting concerning foreign bank and financial accounts. Today, I’d like to talk about what type of accounts are actually reportable and I’d like to focus specifically on Mexico. What type of Mexican accounts are reportable? First of all, your regular checking and savings accounts are important and fixed-deposit accounts are important. You will notice that fixed-deposit accounts are reported as separate accounts from checking accounts and savings accounts. It doesn’t matter if they are to renew or change the account numbers; it doesn’t really matter. What matters is that there is an account number associated with the fixed deposits and that’s what gets reported on the FBAR. The same rule applies to Form 8938.
Besides the regular checking, savings and fixed-deposit accounts, also all of your investment accounts and securities accounts are reportable on FBAR. Life insurance policies: if you have a life insurance contract, that’s also going to be reportable on FBAR. Investments in gold, silver and other precious metals that are placed in a general bank vault – that would be reportable on FBAR as well. Basically, what you’re looking for is a fiduciary relationship between the financial institution and you where the financial institution has access to the assets that it holds on your behalf along with an account number associated with that access.
There are other possible assets that won’t fall neatly within the categories I described, but may also be reportable on FBAR, for example, prepaid credit cards. Here, you’ll want to disclose everything to your international tax attorney to make sure that all of the assets are reported on your FBAR.
In the next blog, I will continue talking about US International tax compliance concerning Mexican assets.
Thank you for watching, until the next time.