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Level 3
posted Mar 16, 2023 5:52:43 PM

At any time during 2022, did you have an interest in (or a signature or other authority over) a financial account in a foreign country, such as a bank account, securities account, or other financial account?"

I am not sure how to answer this question. I own a mutual fund I opened in the UNITED STATES and received a consolidated tax document which showed me that I had a security that earned foreign income. It is for Hartford Schroeders International Stock. When I log into my mutual fund, I am seeing a title called positings and underneath an area says mutual funds, and Schroeders International Stock is there. Is the answer to the question yes or is it no?

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2 Replies
Level 15
Mar 16, 2023 6:25:02 PM

Your answer is No. You do not have an account in a foreign country.

 

Expert Alumni
Mar 16, 2023 6:42:52 PM

This would not be considered a Foreign Bank Account for purposes of this question, and you can answer no here.

 

The U.S. government requires reporting of foreign financial accounts because foreign financial institutions may not be subject to the same reporting requirements as domestic financial institutions.

 

If you have bank accounts located outside of the United States, the Bank Secrecy Act may require that you report those account balances to the Internal Revenue Service (IRS) by filing form TD F 90-22.1, also known as the Report of Foreign Banks and Financial Accounts (FBAR). Failure to properly file an FBAR and declare the account balance could lead to civil penalties costing hundreds of thousands of dollars and even result in criminal charges.


Click here for additional guidance on how to report foreign bank accounts.