What IRS form must taxpayers use to disclose foreign bank accounts?

The requirement for taxpayers to disclose foreign bank accounts is specifically outlined under the Bank Secrecy Act, and the relevant form for this purpose is FinCEN Form 114. This form, also known as the Report of Foreign Bank and Financial Accounts (FBAR), must be filed by U.S. taxpayers who have a financial interest in or signature authority over foreign bank accounts with a combined value exceeding $10,000 at any point during the calendar year.

FinCEN Form 114 serves to report information about these foreign accounts to the Financial Crimes Enforcement Network (FinCEN) and is crucial for compliance with U.S. laws aimed at preventing money laundering and tax evasion. Reporting through this specific form helps ensure that the U.S. government can track foreign assets and monitor potential financial misconduct.

While Form 1040 is the standard individual income tax return form and relates to overall income and tax liability, it does not specifically address the reporting of foreign bank accounts. Form W-2 is used to report wages paid to employees and the associated taxes withheld, making it irrelevant to foreign bank account disclosures. Form 8865 is used for reporting issues related to foreign partnerships, which also does not pertain to foreign bank accounts.

Thus, the correct form