Funds in all foreign financial accounts and trusts must be reported on Schedule B, Part III of your Form 1040. Recently, the IRS has been checking this closely because now they are levying a large civil penalty fine for failure to report all foreign accounts. Most Foreign Service personnel quickly learn that they are not required to file their annual tax returns until June 15 if they are posted overseas. This is still true, but remember, this automatic extension does not include an automatic extension for payment. If you are likely to owe taxes, they.
