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Resources

Resources for legal foreign banking

Start with the official sources - they cost nothing and reflect the current rules more reliably than any secondhand summary.

This is a cross-border topic - where a rule depends on where you live or are tax-resident, the relevant reporting regime is named on the page.

Do this

Checklists you can work through

Before you open or keep a foreign account

  • Confirm whether you are a US person for reporting purposes
  • Track the combined value of all your foreign accounts throughout the year, not just at year-end
  • Ask the foreign bank directly whether it accepts US citizens and what documentation it requires
  • Set a calendar reminder for the FBAR filing deadline each year
  • Keep copies of account statements and opening documents in one place
  • Ask any advisor for their license number and verify it independently before paying for advice
  • If you discover a past reporting gap, look into the IRS streamlined filing procedures before assuming the worst
Avoid these

Common mistakes worth avoiding

Assuming a foreign account is illegal

Having a foreign bank account is legal - the obligation is to report it when required, not to avoid having one.

Treating reporting as optional if no tax is owed

FBAR and FATCA thresholds are generally based on account value, not taxable income - report regardless of whether tax is owed.

Assuming your bank's own reporting satisfies your personal filing obligation

Bank-side FATCA reporting and your own FBAR/FATCA filings are separate requirements - both may apply to you independently.

Taking a bank's account rejection personally

Recognize it's usually a FATCA compliance-cost decision, then look for institutions with an established track record of serving US clients.

Treating a foreign trust or corporation like a simple bank account

Get dedicated professional guidance the moment a structure, not just an account, is being considered - the reporting stakes are meaningfully higher.

Keeping thin records for a foreign account

Keep full statements, transfer records, and copies of past filings indefinitely, not just for a few years.

Plain English

Glossary

The words that get used as if everyone already knows them.

FBAR

FinCEN Form 114, the Report of Foreign Bank and Financial Accounts — a separate filing (not part of your tax return) required for US persons whose combined foreign account balances exceed the reporting threshold at any point in the year.

FATCA

The Foreign Account Tax Compliance Act — a US law that requires most foreign financial institutions to report account information about US account holders directly to US tax authorities.

US person

For reporting purposes, generally a US citizen, green card holder, or resident alien — obligations can apply regardless of where you currently live.

Foreign financial account

A bank, brokerage, or similar account held at a financial institution located outside the United States.

Willful vs. non-willful violation

A legal distinction in how a reporting failure is penalized — non-willful failures still carry real penalties, which is why professional guidance matters even for honest mistakes.

Foreign financial institution

A bank, brokerage, or fund located outside the United States — many now report US account holder data directly to US authorities under FATCA.

Aggregate value

The combined total across all your foreign accounts, used to test whether the FBAR reporting threshold is met.

Foreign trust

A separate legal entity formed abroad to hold assets — carries its own, more extensive disclosure requirements distinct from a simple bank account.

Foreign corporation

A business entity formed outside the US — US owners can face additional reporting obligations beyond standard account disclosure.

Streamlined filing compliance procedures

An IRS program that lets certain taxpayers who non-willfully failed to report foreign accounts come into compliance with reduced penalties — a real, legitimate option worth discussing with a professional.

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