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FastFactsFeature Presentation

May 25, 2011

We are using audio during this session, so please dial in to our conference line…

Phone number: 888-651-5908 Participant code: 182500

© 2011 The Johns Hopkins University. All rights reserved.

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Today’s TopicWe’ll be taking a look at…

Reporting Requirements for Foreign Bank Accounts

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Today’s PresenterKaliopi Provencher, Director of Treasury OperationsSunanda Holmes, Assistant Director for International Business Compliance

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Session Segments

PresentationKaliopi and Sunanda will address reporting requirements for foreign bank accounts to the Internal Revenue Service (IRS).During Kaliopi and Sunanda’s presentation, your phone will be muted.

Q&AAfter the presentation, we’ll hold a Q&A session. We’ll open up the phone lines, and you’ll be able to ask questions. Kaliopi and Sunanda will answer as many of your questions as time allows.

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Contact Us

If you would like to submit a question during the presentation or if you’re having technical difficulties, you can email us at: fastfacts@jhu.eduYou can also send us an instant message!

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How To View Full Screen

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Survey

SurveyAt the end of this FastFacts session, we’ll ask you to complete a short survey. Your honest comments will help us to enhance and improve future FastFacts sessions.

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Reporting Requirements for Foreign Bank Accounts

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Agenda

Explain FBAR filing requirementsDefine and discuss “foreign financial account” and signature authority or other control over financial accountsDemonstrate the completion of form TD F 90-22.1

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Foreign Bank Account Report (FBAR)A requirement since 1970 – significant revisions in 2008U.S. citizens and residents and certain non-residentsFinancial interest or signature authorityForeign financial accountsAggregate value exceeding $10,000 in calendar year

What is FBAR?

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U.S. citizensForeign persons residing in the U.S. for extended periods of time (H-1B, L-1, TN, etc.)Domestic corporationsDomestic trustsIndividuals with signing authority or other control over non-U.S. accounts

FBAR Filing Requirements

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Bank accounts (savings, checking, etc.)Securities and brokerage accountsMutual fundsCertain types of annuities or pension accountsRetirement plansInterest in partnerships, trusts or other pass-through entities having foreign accounts

What is a “Foreign Financial Account”?

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Signature authority - person controls the disposition of money or other property in the account by sending a document containing his signature to the bank or other person with whom the account is maintained.Other authority – person exercises power that is comparable to signature authority over an account by direct communication, either orally or by some other means to the bank or other person with whom the account is maintained.

What is “Signature Authority”?

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Form TD F 90-22.1Individual filingUniversity filingReceived by June 30th for the previous calendar yearReporting on IRS Form 990 and 1040No extension is available

What is Required For Filing?

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Sample TD F 90-22.1

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Provide partially completed TDF form 90-22.1 Complete the form as indicatedPart I - Sections 1 through 14

Section 3 - complete with your Social Security NumberSection 5 – enter your birth date as MM/DD/YYY

Part I - Sections 9, 10, 11, 12, 13 – Enter current mailing addressPart II--Sections 15 through 23

- Complete this section ONLY IF YOU HOLD ONE OR MORE BANK ACCOUNTS IN YOUR NAME IN A FOREIGN COUNTRY 

-List each personal account separately, using the second page if necessary

JHU’s Procedures for Filing FBAR

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Part III - Sections 15 through 33- Complete this section ONLY IF YOU HOLD ONE OR MORE

BANK ACCOUNTS IN YOUR NAME or JOINTLY OWN WITH ANOTHER PERSON IN A FOREIGN COUNTRY.  - List each personal account separately.

Part IV - This section has been pre-filled with JHU/JHPIEGO bank accounts (signing authority only – no financial interest)- Review the prefilled account information in Part IV for

accuracy - Complete section 43 with your job title for each listed account

- If you need to make corrections or need additional blank pages, go to the IRS website, www.irs.gov and print a blank form TDF 90-22.1

Part V - Leave blank – does not apply to employees

JHU’s Procedures for Filing FBAR

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Finishing The FormIn the top right corner of each page, number the pages according to the number of pages you have as follows:  1 of 4, 2 of 4, etc.

 Sign and date the Form on page 1, Part II, Sections 44, 45, and 46

Keep a copy of the Form for your records and mail the completed ORIGINAL to: 

U.S. DEPARTMENT OF THE TREASURYP.O. BOX 32621DETROIT, MI 48232-0621

Once the original form has been completed and mailed, please send a confirmation email to treasuryops@jhu.edu

Please contact the Treasury Department with any inquiries regarding this form at treasuryops@jhu.edu or Margaret Nock at (443)997-4092

   

JHU’s Procedures for Filing FBAR

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Penalties For Not Filing FBAR

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Failure to file may result in a civil penalty not to exceed $10,000. A person who willfully fails to report an account or account identifying information may be subject to a civil monetary penalty equal to the greater of $10,000 or 50 percent of the balance of the account at the time of the violation.

Penalties for Non-Filing

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Please contact for more information:

Kaliopi Provencher kcgrund@jhu.eduSunanda Holmes sunandaholmes@jhu.edu

Contact Information

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Conclusion

Today we:Explained FBAR filing requirementsDefined and discussed “foreign financial account” and signature authority or other control over financial accountsDemonstrated the completion of form TD F 90-22.1

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We’re going to open the phone lines now!

There will be a slight pause, and then a recorded voice will provide instructions on how to ask questions over this conference call line.

We’ll be answering questions in the order that we receive them.

We’ll also be answering the questions that were emailed to us during the presentation.

If there’s a question that we can’t answer, we’ll do some research after this session, and then email the answer to all participants.

Q&A

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Thank You!

Thank you for participating!We would love to hear from you.

Are there certain topics that you would like us to cover in future FastFacts sessions?Would you like to be a FastFacts presenter?Please email us at: fastfacts@jhu.edu

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Survey

Before we close, please take the time to complete a short survey.Your feedback will help us as we plan future FastFacts sessions.Click this link to access the survey… http://connect.johnshopkins.edu/fastfactssurvey/

Thanks again!