Archive of entries posted on May 2013

Summary of Foreign Information Reporting for U.S. Citizens and Residents

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The Internal Revenue Service (IRS) requires U.S. taxpayers who have currency or property invested in foreign countries to file information returns in connection with their foreign holdings and certain foreign transactions they may have engaged in.   There are substantial monetary penalties for failure to file these returns in a timely fashion.

Form TD F 90-22.1 – Report of Foreign Bank and Financial Accounts (FBAR). If you have a financial interest in or signature authority over a foreign financial account,

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W-8 Forms for Foreign Aliens and Entities

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A W-8 form for all foreign aliens/entities is needed for all payments. The IRS requires a mailed original ink signed and dated form to be obtained. A faxed copy or emailed copy is not acceptable. There are four types of W-8 forms. The foreign alien/entity will need to determine the type of form that applies to them. If you complete Form W-8 you will not receive Form 1099. However, you may receive Form 1042-S which reports compensation,

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