FBAR requirement

[minglevi 0]

My mother who recently became US permanent resident (not citizen) has to file FBAR?

She has many accounts but none of them individually is more than 10k

does she still needs to report FBAR?

for example she has 10 different fixed deposits which total becomes more than 10k but each individual fixed deposit is of course less than 10k

so she has to file FBAR?

[Merrytooth 5,748]

For Foreign accounts/assets, if total values of the all assets greater than $10,000 at any time during the calendar year, you have to file FinCEN Form 114 (FBAR)

https://ttlc.intuit....fincen-form-114

So yes, she has to file FBAR, and the interests (converted to USD) earned from this foreign accounts must be reported in Schedule B Line 1.

[CarlosAndSveta 808]

My mother who recently became US permanent resident (not citizen) has to file FBAR?

She has many accounts but none of them individually is more than 10k

does she still needs to report FBAR?

for example she has 10 different fixed deposits which total becomes more than 10k but each individual fixed deposit is of course less than 10k

so she has to file FBAR?

Yes, she has to file an FBAR. This is from the IRS Website:

Who Must File an FBAR

United States persons are required to file an FBAR if:

1. The United States person had a financial interest in or signature authority over at least one financial account located outside of the United States; and
2. The aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year to be reported.

United States person includes U.S. citizens; U.S. residents; entities, including but not limited to, corporations, partnerships, or limited liability companies, created or organized in the United States or under the laws of the United States; and trusts or estates formed under the laws of the United States.

Item 2 makes it clear that your mother must file the FBAR. Here is the link to the IRS Webpage: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Report-of-Foreign-Bank-and-Financial-Accounts-FBAR

[minglevi 0]

For Foreign accounts/assets, if total values of the all assets greater than $10,000 at any time during the calendar year, you have to file FinCEN Form 114 (FBAR)

https://ttlc.intuit....fincen-form-114

So yes, she has to file FBAR, and the interests (converted to USD) earned from this foreign accounts must be reported in Schedule B Line 1.

Even though her income was less than 10k (worldwide income) she has to file income tax return? and schedule B?

[Merrytooth 5,748]

You could read here to see if you have to file Tax return:

http://www.irs.gov/Individuals/Do-You-Need-to-File-a-Federal-Income-Tax-Return%3F-

Income Tax Return and FBAR are filed separately.

Income Tax Return -- IRS

FBAR -- US Treasury Department.

Hence, if you don't have to file Tax Return, but total values of all foreign assets greater than $10,000 at any time during the calendar year, you still have to file FBAR.

[minglevi 0]

You could read here to see if you have to file Tax return:

http://www.irs.gov/Individuals/Do-You-Need-to-File-a-Federal-Income-Tax-Return%3F-

Income Tax Return and FBAR are filed separately.

Income Tax Return -- IRS

FBAR -- US Treasury Department.

Hence, if you don't have to file Tax Return, but total values of all foreign assets greater than $10,000 at any time during the calendar year, you still have to file FBAR.

Thanks...now filing FBAR is also confusing...I am under impression if you have 20 different accounts in India and if total for all of them becomes more than 10k than you need to report all those 20 accounts even though individually none of the account is more than 10k....is this correct?

Or we have to report only if any single account hits more than 10k mark in that year?

[Merrytooth 5,748]

You have to report every single foreign account in that year for FBAR, since the total of the them are > 10K

Uncle Sam wants to know everything, every foreign assets you have

Edited March 19, 2014 by Merrytooth