Information Returns and Reports

If you acquire or dispose of stock in a foreign corporation, own a controlling interest in a foreign corporation, or acquire or dispose of any interest in a foreign partnership, you may have to file an information return.  You also may have to file an information return if you transfer property to a foreign trust, or if you have transferred property to a foreign trust with at least one US beneficiary.  You may have to file reports if you ship currency to or from the United States or if you have an interest in a foreign bank or financial account.

Form 5471

Form 5471 must generally be filed by certain US shareholders of controlled foreign corporations and by certain shareholders, officers, and directors of foreign personal holding companies.  Form 5471 must also be filed by officers, directors, and shareholders of US entities that acquire, dispose of, or are involved in the reorganization of a foreign corporation.

If Form 5471 is required, you must file it at the time you file your income tax return.

Form 3520

Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Foreign Gifts, is used to report:

·       Certain transactions with foreign trusts; and

·       Receipt of certain large gifts or bequests from certain foreign persons.

It must be filed by:

w      US persons that are treated as owners of any portion of a foreign trust for US income tax purposes under sections 671 through 679 (the “grantor trust rules”) to report certain information’

w      US persons to provide information about distributions received from foreign trusts; and

w      Other individuals as listed in the Form 3520 instructions.

You must file the form by the due date (including extensions) of your return.  Send Form 3520 to the Internal Revenue Service Center, Philadelphia, PA 19255.

Form 4790

Form 4790, Report of International Transportation of Currency or Monetary Instruments, must be filed by each person who physically transports, mails, ships, or causes to be physically transported, mailed or shipped, into or out of the United States, currency or other monetary instruments totaling more than $10,000 at one time.  The filing requirement also applies to any person who attempts to transport, mail, or ship the currency or monetary instruments or attempts to cause them to be transported, mailed, or shipped.  Form 4790 must also be filed by certain recipients of currency or monetary instruments.

The term “monetary instruments includes coin and currency of the United States or of any other country, money orders, traveler’s checks, investment securities in bearer form or otherwise in such form that the title passes upon delivery, and negotiable instruments (except warehouse receipts or bills of lading) in bearer form or otherwise in such form that title passes upon delivery.  The term includes bank checks, and money orders that are signed, but on which the name of the payee has been omitted.  The term does not include bank checks, or money orders made payable to the order of a named person that have not been endorsed or that bears restrictive endorsements.

A transfer of funds through normal banking procedures (wire transfer) which does not involve the physical transportation of currency or bearer monetary instruments is not required to be reported on Form 4790.

Recipients

Each person who receives currency or other monetary instruments from a place outside the United States for which a report has not been filed by the shipper must file Form 4790.

It must be filed within 15 days after receipt with the Customs officer in charge at any port of entry or departure, or by mail with the:

            Commissioner of Customs

            Attention:  Currency Transportation Reports

            Washington, DC 20229.

Shippers or mailers

If the currency or other monetary instrument does not accompany a person entering or departing the United States, Form 4790 can be filed by mail with the Commissioner of Customs at the above address.  It must be filed by the date of entry, departure, mailing, or shipping.

Travelers

Travelers carrying currency or other monetary instruments with them must file Customs Form 4790 with the Customs officer in charge at any Customs port of entry or departure when entering or departing the United States.

Penalties

Civil and criminal penalties are provided for failure to file a report, supply information, and for filing a false or fraudulent report.  Also, the entire amount of the currency or monetary instrument may be subject to seizure and forfeiture. 

More information about the filing of Form 4790 can be found in the instructions on the back of the form.

Form TD F 90-22.1

Form TD F 90-22.1 must be filed if you had any financial interest in, or signature or other authority over, a bank, securities, or other financial account in a foreign country.  You do not have to file the report if the assets are with a US military banking facility operated by a US financial institution or if the combined assets in the account(s) are $10,000 or less during the entire year.

You must file this form by June 30 each year with the Department of Treasury at the address shown on the form.  Form TD F 90-22.1 is not a tax return, so do not attach it to your Form 1040.