f you have a bank account, brokerage account, mutual fund, trust or other type of foreign financial account, you may need to file Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR).
The IRS requires certain tax-payers to file an FBAR because foreign financial institutions may not be subject to the same reporting requirements as domestic financial institutions. The FBAR is a tool to help the United States government identify persons who may be using foreign financial accounts to circumvent United States tax law. Investigators use FBARs to help identify or trace funds used for illicit purposes or to identify unreported income maintained or generated abroad.
In general, you must file an FBAR when the total value of all foreign financial accounts that you own or have signature authority over exceeds $10,000 at any time during the calendar year. The FBAR is not filed with your federal income tax return; it is an annual report that the Department of the Treasury must receive on or before June 30 of the year following the calendar year being reported. Your tax professional can help you with this filing if required.