Foreign Account Information Due June 30th



Prairie Village, KS 66208		July 12, 2004

Huge penalties can be imposed by the IRS for U.S. taxpayers who have unreported foreign financial accounts. Foreign accounts are required to be reported on the tax return (Schedule B of Form 1040 for individuals) but that's not the end of it. On or before June 30th the taxpayer must file a Form TD F 90-22.1 with the U.S. Treasury Deprtment in Detroit, Michigan. According to Vernon Jacobs, a CPA and co-author of "The Offshore Tax Manual", "Foreign financial accounts include bank checking accounts, securities accounts, time deposits, accounts where access is available via credit card and even such arrangements as e-gold." However, Jacobs points out that no report is required if the maximum value of all such foreign accounts (combined) in the prior year (2003) did not equal or exceed $10,000. According to the instructions to the form, "Civil and criminal penalties, including in certain circumstances a fine of not more than $500,000 and imprisonment of not more than five years, are provided for failure to file a report, supply information, and for filing a false or fraudulent report". Copies of the form and instructions are availble at the IRS web site at http://www.irs.gov/pub/irs-pdf/f9022-1.pdf Further comments about this report are also provided by Vernon Jacobs at http://www.offshorepress.com/tdf90221.htm. FAQs about this form are available at http://finance.groups.yahoo.com/group/JacobsReport/

Vernon Jacobs (jacobs@offshorepress.com) President Offshore Press, Inc. 4500 W. 72nd Terrace Prairie Village, KS 66208 Phone : 913-362-9667 Fax : 913-432-7174

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