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Schedule B - Foreign Accounts and Trusts

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Schedule B - Foreign Accounts and Trusts

Answer

Schedule B Part III: Foreign Accounts and Trusts

Line 7a: Answer "YES" for box 7a if either 1 or 2 next applies.

  1. You own more than 50% of the stock in any corporation that owns one or more foreign bank accounts.
  2. At any time during the year you had an interest in or signature or other authority over a financial account in a foreign country (such as a bank account, securities account, or other financial account).

    Note: Item 2 does not apply to foreign securities held in a U.S. securities account.

Exceptions 

Check the "No" box if any of the following applies to you:

  • The combined value of the accounts was $10,000 or less during the whole year.
  • The accounts were with a U.S. military banking facility operated by a U.S. financial institution.
  • You were an officer or employee of a commercial bank that is supervised by the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, or the Federal Deposit Insurance Corporation; the account was in your employer's name; and you did not have a personal financial interest in the account.
  • You were an officer or employee of a domestic corporation with securities listed on national securities exchanges or with assets of more than $1 million and 500 or more shareholders of record; the account was in your employer's name; you did not have a personal financial interest in the account; and the corporation's chief financial officer has given you written notice that the corporation has filed a current report that includes the account.

If you have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account, exceeding certain thresholds, the Bank Secrecy Act may require you to report the account yearly to the Internal Revenue Service by filing electronically a Financial Crimes Enforcement Network (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts (FBAR).

 

Line 7b: If you checked the "Yes" box on line 7a, enter the name of the foreign country or countries in the space provided on line 7b. Attach a separate statement if you need more space.

Line 8: If you received a distribution from a foreign trust, you must provide additional information. For this purpose, a loan of cash or marketable securities generally is considered to be a distribution. See form 3520 for details.

If you were the grantor of , or transferor to, a foreign trust that existed during the tax year, you may have to file Form 3520.

Do not attach Form 3520 to Form 1040. Instead, file it at the address shown in its instructions.

Form 3520 is not supported by OLTPRO. You will have to paper file this form.


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Views: 2487 Created on: Jun 15, 2013
Date updated: Aug 10, 2015

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