| Foreign Bank Account Reporting |
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The supporting schedule in U.S. individual tax returns supporting Interest and Dividends, Schedule B, has a question relating to the taxpayer's interest in foreign bank accounts or trusts. Where the aggregate value of the taxpayer's bank, securities or other foreign financial accounts exceeds $10,000 US during the calendar year, the taxpayer must file Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts. The due date for this report is June 30--it is not extended along with a tax return.
The intent of Foreign Bank Account Reporting is to detect money laundering and illegal payments, but it covers all U.S. persons. A civil penalty of up to $10,000 may be imposed for failure to report--regardless of willfulness--with additional civil and criminal penalties for more serious willful violations.
These are serious provisions with serious consequences. If you have foreign financial accounts, including Canadian RRSP accounts, you must report them.