IRS - Foreign Bank Accounts
Explains FBAR filing requirements for U.S. persons with a financial interest in or signature authority over a foreign bank account above reporting thresholds.
Washington Tax Law Firm Will Protect Your Rights
The Internal Revenue Service (IRS) treats money held in foreign bank accounts differently than money deposited in domestic accounts, and in some cases, the IRS has taken steps to discourage foreign account usage.
If you have a financial interest in, or signature authority over, a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account, exceeding certain thresholds, the Bank Secrecy Act may require you to report the account yearly to the Department of Treasury by electronically filing a Financial Crimes Enforcement Network (FinCEN) 114, Report of Foreign Bank and Financial Accounts (FBAR). U.S. citizens are required to file an FBAR if:
- They had a financial interest in or signature authority over at least one financial account located outside of the U.S., and
- The aggregate value of all foreign financial accounts exceeded $10,000.00 at any time during the calendar year reported.
A person who holds a foreign financial account may have a reporting obligation even when the account produces no taxable income. The reporting obligation is met by answering questions on a tax return about foreign accounts (for example, the questions about foreign accounts on Form 1040 Schedule B) and by filing an FBAR.
Contact an Experienced Washington Tax Law Attorney Today
Do you have questions regarding how the IRS treats foreign bank accounts? The tax attorneys at Lana Kurilova Rich PLLC can answer questions and help offer solutions. Contact us online or call (425) 289-0629 for an initial phone consultation today. Your case can be handled entirely via phone, email, and videoconferencing, and we provide solid legal representation, no matter where you live.
About Attorney Lana Kurilova Rich
- Washington tax attorney since 2003: Lana Kurilova Rich has been admitted to the Washington State Bar since 2003 and has focused her practice on tax law since opening Lana Kurilova Rich, PLLC the same year.
- Master of Laws in Taxation (LL.M.): Lana earned her LL.M. in Taxation from the University of Washington School of Law in 2007 in addition to her J.D. from Seattle University School of Law in 2003.
- Former Court of Appeals law clerk: Lana served as Law Clerk to the Honorable Elaine Houghton of the Washington State Court of Appeals, Division II.
- Bilingual: English and Russian: Born and raised in Russia, Lana is fluent in Russian and licensed to practice law in the Russian Federation in addition to Washington State.
- Federal, state, and international scope: Lana represents clients before the IRS, Washington State agencies (DOR, ESD, and L&I), and on cross-border tax matters including FBAR and Form 8938 compliance.
- Direct attorney communication: Clients work directly with Lana Kurilova Rich, not a routing desk. Calls and emails are returned promptly throughout the engagement.
- Pro bono Low Income Taxpayer Clinic: Lana has volunteered with the Low Income Taxpayer Clinic since 2006, helping qualifying taxpayers resolve IRS disputes at no cost.
- Integrated tax preparation and bookkeeping: The firm provides federal and state tax preparation alongside legal representation, reducing handoffs and accelerating resolution.
We invite you to contact our Bellevue, Washington, law office today by phone or by e-mail to discuss your case with our experienced tax lawyer. We are here to help.