11. Report your foreign accounts
Did you know that your foreign account must be reported on Form 8939? It’s not illegal, but you have to report it when your foreign assets exceed a specific threshold.
If you’re a single U.S. resident, you have to file Form 8939 if the value of your foreign financial assets exceeds $75,000 at any time during a year, or, in other words, if it exceeds $50,000 at the end of a year. Those who prefer filing jointly should know that the threshold is doubled, namely $150,000 at any time during a year or $100,000 at the end of the year.
To avoid IRS scrutiny, report your foreign accounts correctly.
