Legal Question in Tax Law in Florida

U.S. citizens and residents can have a bank account anywhere in the world. There are no tax rules that prevent you from opening or maintaining a foreign bank account. However, as a U.S. citizen or resident you are required to report the income on those accounts on your U.S. income tax return. When you have a financial interest in, or signature or other authority over a bank account, securities account, or other financial account in a foreign country at any time during the tax year, you may have to complete Treasury Department Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts. The form should be filed by June 30 of the following year with the Department of the Treasury at the address listed on the form. You need not file this form if the combined assets in the account(s) are $10,000 or less during the entire year.

Report income from the foreign accounts on the appropriate schedules of your tax return, such as Schedule B for interest and dividends. Part 3 of Schedule B also requires a disclosure of the foreign bank account. You should include Schedule B with your annual income tax return if only just for the foreign bank account disclosure.