This is a reminder to our clients and friends that there are two important deadlines for US tax and information reporting purposes that are coming soon.
First, US tax residents that are individuals and who live abroad have until June 15, 2015 to file their US tax return (Form 1040) or an extension. Attached to Form 1040 must include Form 8938, “Statement of Special Foreign Financial Assets,” if you have a financial interest in “Specified Foreign Financial Assets” and you meet certain asset valuation thresholds. This requirement came into law as part of the Foreign Account Tax Compliance Act of 2010 (“FATCA”). Temporary regulations were issued in late 2011 and finalized in late 2014. Also, nonresident aliens may also have file a US income tax return (Form 1040NR) if they had US source income or were engaged in a US trade or business in 2014. The deadline is also June 15, 2015, unless you received wages subject to US income tax withholding. In that case, the deadline was April 15, 2015. As today is June 15, 2015, you should file an extension if you have not already done so or cannot file your US income tax return by the deadline. This extension will give you four extra months of time to file your US income tax return. Extensions are filed on Form 4868 “Application for Automatic Extension of Time To File US Individual Income Tax Return” and can be e-filed.
Second, US tax residents must also file Form 114, “Report of Foreign Bank and Financial Accounts,” by June 30, 2015.
Our Client Alert discusses these reporting obligations in more detail.