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Unformatted text preview: - Foreign tax credit IRS has stated that no penalty will be assessed if no tax is owed. NON-U.S. FINANCIAL AND OTHER ASSETS Foreign Bank and Financial Account Report Assets over $10,000 Non U.S. Located Assets to Report- Real property- Bank and investment accounts- Bonds- Securities- Other financial instruments- Mutual funds- Interests in corporations and partnerships- Automobile- Artwork- Jewellery- Prime residence in some situations IRS has stated that no penalty will be assessed of the failure to file is due to reasonable cause. NEW FOREIGN ASSET RULES FOREIGN ACCOUNT TAX COMPLIANCE ACT In effect after 2013 Aggregate value $50,000 and over Tax years beginning after March 18, 2010. $10,000 penalty for failure to file. Penalty up to $50,000 for continuous failure to file following notification by IRS. 40% tax on unreported income from these accounts. Enforced by a 30% penalty on the U.S. income of non U.S. financial institutions...
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- Spring '12