Tax Day – Don’t Forget Your Offshore Disclosure Requirements

On Tax Day it is a helpful reminder that a variety of income tax reporting obligations are associated with offshore assets. Any ownership of an asset that gives rise to income when those assets are located outside of the United States may need to be reported to the IRS. "Not only are assets held in financial institutions reported (Schedule B and Form 8938), but distributions from trusts and estates may also be reported with the annual income tax filings on Form 3520," said Jim Mastracchio, Leader of BakerHostetler's Criminal Tax Defense team. In addition, the 2014 FBAR reports will be due in June, giving the IRS and FinCEN additional information on foreign accounts. "Now is the time to ensure that all required filings are up to date," added Mastracchio. "Any noncompliant taxpayer can take advantage of a variety of programs being offered by the IRS to come into compliance with income tax and informational reporting obligations for prior years."