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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
- Taxation in the United States, Penalty, green card holders, Voluntary Disclosure Initiative