Reporting foreign bank account information.

• Author: Sherr, Eileen

The AICPA reminds tax advisers to ask clients about the existence of foreign bank accounts and to disclose such information on Form 1040, Schedule B, Part III, Question 7. Tax advisers should also consider notifying clients of their responsibility to file Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts, by June 30, 2003.

This form is required to be filed by U.S. citizens and residents who have a financial interest in or signature or other authority over any financial accounts (including bank, securities or other types of financial accounts in a foreign country), if the aggregate value of such accounts exceeded $10,000 during 2002.

In recent testimony, Treasury clarified that addressing the lack of disclosure of foreign financial accounts has become a priority The IRS's Offshore Voluntary Compliance Initiative allows partial amnesty until April 15, 2003 (see Tax Practice & Procedures, "Amnesty for OffShore...