If you are an individual who is required to file a US tax return and you resided outside of the United States, had foreign income, or own foreign financial assets, you may be required to report additional information on your tax return and file additional disclosure returns.  This organizer will help you gather and organize information that needs to be reported on your tax return.

Who must file a US Tax Return?
The United States imposes income tax return filing requirements on individuals who are:

• US citiizens,
• Greencard holders,
• Meet the substantial presence test, or
• Have income from US sources

You are required to file a US tax return if your income is equal to or greater than your standard deduction for the tax year.

Reporting Requirements
If you were a U.S. citizen or greencard holder, or if you were a U.S. resident for tax purposes because you met the substantial presence test during the tax year, you are required to:

1. Disclose ownership foreign financial assets
2. Disclose a beneficiary interest in, or signature authority over a foreign trust
3. Report receipt of foreign gifts and inheritances in excess of $100,000 during the year.
4. Report if you have a 10% or greater ownership of a foreign corporation, LLC, or partnership, of if you are an officer of a foreign corporation or LLC
5.  Report ownership interest in foreign investment funds, such as foreign mutual funds or real estate investment groups
6. Report report your worldwide income, even if you did not live in the United States at any time during the current or prior years
7. File FinCEN Form 114a if the agregate value of your foreign financial assets exceeded $10,000 U.S. dollars at any time during the tax year

Your worldwide income includes any income you earned from investments, business interests, wages, self employment, gross rental income, pension or other form of retirement income, social security, capital gains, interest, dividends, crypto, etc.

The Foreign Income and Assets Organizer collects specialized information not collected on the 1040 Individual Tax Organizer.

Please provide your identifying information so that we can match this organizer with your client file.

Foreign Financial Accounts
You are required to disclose to the IRS if you had an interest in any of the following kinds of foreign assets:

• Bank accounts
• Brokerage accounts
• Retirement accounts (for example, employer retirement/pension accounts, Australia’s Superannuation Fund, or Canadian RRSP accounts)
• Foreign trusts, or stock holdings
• Foreign life insurance policies
• Foreign limited liability company interests
• Foreign partnership interests
• Foreign privately held corporation interests
• Foreign mutual funds, investment funds, real estate funds
• Foreign trusts

FinCEN Form 114
You are required to file FinCEN Form 114 Report of Foreign Bank and Financial Accounts (FBAR) if you had:

1. A financial interest in or signature or other authority over at least one financial account located outside the United States, and 
2. The aggregate value of those foreign financial accounts exceeded $10,000 at any time during the calendar year reported.

Foreign Account Tax Compliance Act (FATCA)
Under FATCA, U.S. taxpayers holding financial assets outside the United States must report those assets to the IRS with their federal 1040 return by attaching Form 8938, Statement of Specified Foreign Financial Assets. Form 8938 is required when the aggregate value of these assets was more than the amount shown in the table below

Filing status	Taxpayer's Residency is in:	High Value	Year-End Value
Single filers	United States	75,000	50,000
Joint filers	United States	150,000	100,00
Single filers	Foreign country	300,000	200,000
Joint filers	Foreign country	600,000	400,000

Passive Foreign Investment Fund (PFIC)
A passive foreign investment company (PFIC) is a corporation, located abroad, which exhibits either one of two conditions, based on either income or assets:

1. At least 75% of the corporation's gross income is "passive"—that is, derived from investments or other sources not related to regular business operations.
2. At least 50% of the company's assets are investments, which produce income in the form of earned interest, dividends, or capital gains.

Examples of PFICs include:

• Foreign-based mutual funds
• Foreign real estate funds
• Pooled investment companies

U.S. Persons with interest in PFICs file Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund. 

Please complete Pacific Northwest Tax Service's Self-Employment Tax Organizer.

Please complete Pacific Northwest Tax Service's Rental Property Tax Organizer.

Interest & Dividend Income
Please provide the following information for any foreign interest or dividend amounts you received during the year:

1. Name of financial institution
2. Type of income (Interest or Dividends)
3. Gross amount paid to you
4. Any foreign taxes paid on gross amount
5. Currency used to provide this information

You may provide this information in any of the following ways:

1. By entering it in the table below
2. By attaching a spreadsheet or other document with the required information to this organizer (preferred)
3. By uploading to your Secure Portal
4. By delivering a document to our offices

FATCA/FBAR Reporting Requirements

The value of your foreign pension accounts is reportable under FATCA and FBAR rules.

For each foreign pension or retirement account you have, the following information must be reported to the IRS, regardles of whether you received a distribution from the pension during the year:

1. Name of insitition that holds or manages the pension
2. Full address, city, state/province, postal code and country
3. Name of the account owner
4. Maximum value of the account during the year.
5. Value of the account on December 31.
6. Was the account opened or closed during the year?
7. Currency in which the pension is held.

Foreign Account Tax Compliance Act (FATCA)
While foreign stock holdings are not reportable for purposes of FBAR, they do fall the separate FATCA reporting requirements.  U.S. persons with foreign assets in excess of the amounts shown in the table below, must report the value of these holdings with their tax returns.

Satus	Taxpayer's Residency is in:	High Value	Year-End Value
Single filers	United States	75,000	50,000
Joint filers	United States	150,000	100,00
Single filers	Foreign country	300,000	200,000
Joint filers	Foreign country	600,000	400,000

Delivering Stock Holdings Data
You can provide information relating to your stock holding values, buys and sells in the space provided in this Organizer, or by attaching a spreadsheet or other document to this Organizer.  For FATCA reporting purposes, we need the following information for each foreign brokerage account you own:

1. Name of Financial Institution
2. Street Address, City, State/Province, Country, Postal Code
3. Name(s) of account owner(s)
4. Is this a separate or joint account?
5. Date account was opened
6. Date account was closed
7. Highest Balance in the account during the year
8. Balance in the account on December 31
9. Currency used for the account
10. Amount of dividends paid during the year, and the dates received
11. Date shares were purchased
12. Date shares were sold 

If you sold real estate or any other type of foreign property, you are required to report the sale to the IRS.  It is important to keep accurate records from when you purchase and sell the property.  

For sales of real estate, you should also keep records of any improvements you made to the property while you owned it.

If you sold shares of foreign stock, you are required to report the sale of these shares to the IRS.  It is important to keep accurate records of any stock you hold.  These records should show all of the the information shown in the illustration below.

Illustration
Description	Number of Shares	Date Bought	Date sold	Currency	Share Cost	Sales Price
Microsoft	20	09/30/2019	08/31/2024	British Pound	139.54	263.20
7 Digital	50	08/17/2018	10/07/2024	British Pound	5.25	0.23
Fisher & Paykel	100	01/28/2019	05/29/2024	Australian Dollar	12.04	18.15

PFIC Reporting Information
The following information must be reported for each PFIC account you held during the year:

1. Name of Fund
2. Street Address, City, State/Province, Country, Postal Code
3. Name of Account Owner
4. Currency in which the fund is held
5. Date fund was first purchased
6. Amount distributed from fund during the year
7. Fund balance on the first day of the year
8. Fund balance on the last day of the year
9. Amounts invested in the fund during the year
10. Number of shares held on the last day of the year

If any shares of the fund were sold during the year, the following additional infomation is also required:

1. Number of shares sold in 2024.
2. Date sold and sales price.

You may be required to file additional information returns if you owned stock in certain foreign corporations or partnerships.

Form 5471

Form 5471 Information Return of U.S. Persons With Respect To Certain Foreign Corporations is required to be filed if you:

1. Own stock in a Specified Controlled Corporation (CFC)
2. Are an officer or director in a foreign corporation and own 10% or more of the corporation's stock.
3. Became a U.S. person while owning more than 10% of a foreign corporation's stock.
4. Had control in a foreign corporation for at least 30 days.
5. Owned stock in a foreign corporation for at least 30 uninterupted days until the last day of the tax year.

Specified Foreign Corporation

The Specified Foreign Corporation (SFC) is a foreign corporation where:

1. U.S. Shareholders own more than 50 percent by vote or value, or
2. A foreign corporation that has at least one U.S. domestic corporation as a U.S. Shareholder, even if the foreign corporation is not a CFC

Form 8865

If you have a controlling interest in a foreign partnership or you own 10% or more of a foreign partnership that is controlled by U.S. persons, you may be required to file Form 8865 Return of U.S. Persons With Respect to Certain Foreign Partnerships with your tax return.

A U.S. person files Form 8865 to report the information required under:

1. Section 6038 (reporting with respect to controlled foreign partnerships).
2. Section 6038B (reporting of transfers to foreign partnerships).
3. Section 6046A (reporting of acquisitions, dispositions, and changes in foreign partnership interests).

Documents Requried to Prepare Form 5471 and Form 8865

Your foreign corporation’s or partnerhip's year-end balance sheet
Information regarding the corporation or partnerhip's operations and loans
A foreign income statement (USD)

Foreign Gifts & Inheritances

U.S. persons (and executors of estates of U.S. decedents) are required to file Form 3520 Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts with the IRS if they:

• Made certain transactions with foreign trusts,
• Are the owner (grantor) of a foreign trust
• Are the executor of an estate for a U.S. person who received a distribution from a foreign trust during the year
• Are a U.S. person or a beneficiary of a foreign trust who received a distribution from the trust
• Received certain large gifts or bequests from certain foreign persons

Foreign Inheritances & Gifts from Individuals
If the aggregate value of gifts and inheritances that you received during the year exceeds $100,000.

Gifts from Foreign Partnerships & Corporations
If you received a gift from a foreign entity, such as a corporation or partnership, you are required to file Form 3520 if the agregate value of gifts received exceeds the threshold amount under §6039F exceeds $10,000.  After 1996, the §6039F threshold is  adjusted for inflation.

Information Needed to Report Receipt of Foreign Gift or Inheritance
The following information is needed to report the receipt of a foreign gift or inheritance:

1. Date of gift or bequest
2. Description of the property received
3. Fair market value of the property received

Form 3520 Filing Deadline
The due date for filing Form 3520 is usually April 15.  If you reside outside of the United States, the due date is June 30.

Late Filing Penalty
The penalty for late filing of Form 3520 is the greater of:

• $10,000
• 35% of the gross value of property you transferred to the foreign trust,
  35% of the gross value of distributions you received from the foreign trust, or
  5% of the gross value of the foreign trust’s assets.

Reporting Income From a Foreign Trust

Income reporting requirements depend on the relationship you have with the foreign trust, as follows:

• U.S. owner of a foreign trust
  Income of the trust must be reported and included on the owner’s tax return as follows:
  • Form 3520-A is prepared to show the amount and type of income earned by the trust.
  • Each U.S. owner of a foreign trust should receive a Foreign Grantor Trust Owner Statement (Form 3520-A, page 3) from the foreign trust to provide information about the foreign trust income that must be reported on their individual 1040 tax return.

• U.S. beneficiary of a foreign trust
   A U.S. beneficiary of a foreign non grantor trust will report its share of foreign trust income to the extent of distributable net income (DNI). Depending on whether the U.S. beneficiary is a beneficiary of a grantor or non grantor trust, the beneficiary should receive a Foreign Grantor Trust Beneficiary Statement or a Foreign Non Grantor Trust Beneficiary Statement, which includes information about the taxability of distributions the beneficiary has received.

• U.S. transferor of assets to a foreign non grantor trust
  IRC section 684 requires the recognition of gain on certain transfers of appreciated assets to a foreign trust by a U.S. person.

Form 3520

U.S. persons who engaged in a transaction with a foreign trust during the year, are required to file Form 3520 Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts.  You have engaged in a transaction with a foreign trust if you:

• Received a gift or distribution from a foreign trust
• Transfered property to a foreign trust
• Are grantor or other deemed owner of a foreign trust
• Are executor of a state for a U.S. person who was the deemed owner of a foreign trust

Form 3520 must be filed regardless of the amount received or transferred. 

Information needed to prepare Form 3520
Information reportable with respect to transactions with a foreign trust will depend on the type of transfer.  IRS categorizes transactions with foreign trusts as follows:

1. Transfers by U.S. Persons to a Foreign Trust 
2. U.S. Owner of a Foreign Trust
3. Distributions to a U.S. Person From a Foreign Trust

Information required to report ownership of or transactions with a foreign trust includes:

1. Name and address of the foreign trust
2. Name and address of US agent who can provide the IRS with relevant information
3. Dates and amounts of any distributions
4. Description of property transfered
5. Fair market value of property transferred
6. Any information needed to calculate taxable gains such as U.S. cost basis

Form 3520 Filing Deadline
The due date for filing Form 3520 is usually April 15.  If you reside outside of the United States, the due date is June 30.

Late Filing Penalty
The penalty for late filing of Form 3520 is the greater of:

• $10,000
• 35% of the gross value of property you transferred to the foreign trust,
• 35% of the gross value of distributions you received from the foreign trust, or
• 5% of the gross value of the foreign trust’s assets.