Vivinavi : Miami : (United States) Miami

This text has been translated by auto-translation. There may be a slight difference between the original text and the translation. (Original Language: 日本語)

[Penalty Notice] FBAR and FATCA ： Overseas （ Japan ） Obligation to File a Statement of Foreign Assets

｢ “I file my tax return in the U.S., but I don’t report my savings in Japan.” This is one of the most dangerous mistakes Japanese residents in the U.S. tend to make.
The U.S. government is making every effort to track overseas assets and imposes severe penalties for failure to report them. We’ll explain the criteria for “FBAR” and “FATCA”—regulations under which fines are imposed simply for failing to report, even though no taxes are actually due.

FBAR （ FinCEN Form 114 ） : The $10,000 Threshold

All Foreign Financial Accounts （ Banks, securities, savings-type insurance, etc. ）—exceed $10,000 （ (approximately 1.5 million yen at current exchange rates ）) even for a single moment during the year, you are required to report this to the Department of the Treasury. This is a separate procedure from filing a tax return （ with the IRS ）, and you must submit it online by April 15 （ each year ） (automatically extended to October). It is important to note that “while no tax is due, reporting is mandatory.”
FATCA （ Form 8938 ）: Reporting of Higher-Value Assets

Separate from the FBAR, FATCA （ Form 8938 ） is filed as part of the （ Form 1040 ） tax return. This form has a higher threshold and must be filed if you have foreign financial assets exceeding $50,000 for a single filer or $100,000 for a married couple filing jointly （ *For U.S. residents ） .

Penalties and Relief Measures

The penalty for failing to file an FBAR is set at a high rate of $10,000 per account per year, even in cases of unintentional （ Non -Willful ） cases, the penalty is set at a high rate of $10,000 per account per year. Even if you have failed to report in the past, as long as it is before the IRS flags the issue, you may be able to avoid ・ or reduce the penalty by using a relief measure called the “Streamlined Filing Compliance Procedures.”

｢ The notion that “the U.S. government won’t find out about Japanese bank information” is a thing of the past. Information exchange between the Japanese and U.S. governments has already begun.
If you have any concerns—including past unreported income—please consult a professional immediately. Filing a voluntary amended return is the best way to protect yourself.

This article is intended to provide general information and does not constitute legal ・ or tax advice. Please consult a professional regarding your specific case.