What if I have an interest in an account outside of the United States?

The law demands that you tell the government if you have a financial interest in or authority over foreign accounts totaling $10,000 or more during the year.

If you have such an interest, be sure to check the second box on this screen and we'll prompt you to complete Form TD F 90-22.1.

Don't send the form to the IRS with your tax return. Instead, it should go to the Treasury Department at the address shown on the form. The deadline for filing this form is June 30. If you're required to file Form TD F 90-22.1 but don't do so, you may have to pay a penalty of up to $10,000 or more.

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Section 1256 Contracts or Straddles

A Section 1256 contract is any:

  • Regulated futures contract
  • Foreign currency contract
  • Nonequity option
  • Dealer equity option
  • Dealer securities futures contract

A "straddle" is when you hold contracts that offset the risk of loss from each other. If you realize a loss when you sell part of a straddle position, your loss may be disallowed.

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