Good organization and recordkeeping is very important when tax deadlines approach in April (June for those living overseas). Good recordkeeping will help you with the following:
– Prepare accurate income tax returns
– Ensures you will provide all necessary information to you CPA
– Keep track of valuable deductible expenses
– Give you peace of mind
For taxpayers living overseas, it becomes even more important as many taxpayers may need to file one additional form called Report of Foreign Bank and Financial Accounts (FBAR or TD F 90-22.1). Taxpayers should keep monthly bank statements for all foreign accounts to support the highest account balance.
As more and more banks begin to provide only electronic statements, taxpayers should maintain and save electronic copies for their own files as electronic statements will only be available for one year. If not, you may be forced to pay fees for each monthly statement missing. In Hong Kong, it is no surprise for banks like HSBC, Standard Chartered Bank, Hang Seng Bank and Bank of China to charge up to HK $50 for each monthly statement that is requested.
The information contained herein serves as a guideline and is only provided for general informational purposes. It should not be considered as offering any tax advice. Since tax laws are complex, you should consult your tax advisor on specific issues related to your tax situation.