If your business has international ties — foreign accounts, overseas partners, or income from abroad — federal reporting requirements apply. We help you understand exactly what needs to be filed, and make sure it's done right.
Foreign Income & Asset Reporting for Business Owners
FBAR vs. FATCA: Two Requirements, One Clear Explanation
These are separate obligations with different thresholds and different forms — and confusing them is one of the most common mistakes business owners make.
FBAR stands for the Foreign Bank and Financial Accounts Report, filed as FinCEN Form 114 through the Financial Crimes Enforcement Network — not the IRS. If your business or you personally hold a financial interest in, or signature authority over, foreign bank accounts with an aggregate value exceeding $10,000 at any point during the calendar year, an FBAR is required. This applies even if the account earned no income.
FATCA, or the Foreign Account Tax Compliance Act, operates under a separate standard. Form 8938 is filed with your federal tax return and covers a broader range of foreign financial assets — including foreign accounts, foreign partnership interests, and certain foreign securities. The reporting thresholds for Form 8938 are higher and vary depending on your filing status and whether you reside in the U.S.
The practical difference: FBAR captures foreign account access and control. FATCA captures foreign asset ownership and financial interests. Many business owners with international exposure owe both filings. We review your specific situation against each threshold so nothing falls through the cracks.
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Who Typically Needs Foreign Income & Asset Reporting
This isn't just an expat concern. Business owners across a wide range of structures encounter foreign reporting requirements, often without realizing it. You may need to file if your situation includes any of the following:
- A business bank account held at a foreign financial institution
- A foreign subsidiary, branch, or ownership interest in a foreign entity
- Foreign partners or investors with ownership stakes in your U.S. business
- Income earned from international clients or contracts paid through foreign accounts
- Personal foreign accounts you maintain alongside your domestic business activity
- Inherited foreign assets or accounts held in another country
Foreign income tax reporting in Nevada follows the same federal rules that apply nationwide — there's no state-level overlay that changes the obligation. What matters is the federal threshold, the type of asset or account, and whether the reporting deadline was met.
How We Handle Foreign Reporting Alongside Your Business Return
Foreign income and asset filings don't exist in isolation — they connect directly to your business tax return, your entity structure, and in many cases your personal return as well. We prepare FBAR and FATCA filings as part of your broader tax engagement, not as a disconnected add-on. That means the numbers are consistent, the deadlines are tracked together, and nothing gets missed because one filing was handled separately from another.
We work with small business owners who have foreign bank accounts, international income, or ownership interests in foreign entities. If your situation involves a more complex structure — a foreign-owned U.S. entity, a domestic business with foreign partners, or cross-border income that flows through multiple return types — we coordinate those filings as a connected set. For businesses with foreign ownership structures, that work ties directly into your entity tax returns and overall business tax compliance.
Frequently Asked Questions
Do I need to file an FBAR for my business if the foreign account is used for normal operating expenses?
Yes, if the aggregate balance in your foreign accounts exceeded $10,000 at any point during the year, an FBAR is required regardless of how the account was used. Routine business activity doesn't exempt the account from the reporting threshold.Who handles foreign income tax reporting near Reno, NV?
Hartmann & Associates serves business owners throughout Northern Nevada — including Reno, Sparks, Carson City, and surrounding communities — and prepares FBAR and FATCA filings as part of our business tax services. You don't need to work with a large national firm to get this handled correctly.What are the penalties for missing an FBAR filing?
Penalties for non-willful FBAR violations can reach $10,000 per violation per year. Willful violations carry significantly higher exposure — up to the greater of $100,000 or 50% of the account balance. Filing late or incorrectly is far less costly than not filing at all, and we can help you address prior-year gaps if they exist.What's the difference between FBAR and FATCA compliance for a small business owner?
FBAR covers foreign bank and financial accounts where you have a financial interest or signature authority, filed separately through FinCEN. FATCA — reported on Form 8938 with your tax return — covers a broader set of foreign financial assets, including foreign entity interests and certain securities. The thresholds, forms, and filing destinations are different, and both may apply depending on your situation.Does my foreign income need to be reported even if it was already taxed in another country?
Yes. U.S. persons and U.S. business entities are generally required to report worldwide income regardless of where it was earned or whether foreign taxes were paid on it. A foreign tax credit may be available to offset double taxation, but the reporting obligation exists independently of whether foreign taxes were withheld.
