Financial Accounts Back Home? Remember to Submit FBAR by June 30!

[templeton 120]

Many immigrants and visa holders are totally unaware (as I was until my tax accountant mentioned it), so just a friendly reminder...Report of Foreign Bank and Financial Accounts (FBAR) is due by June 30.

All 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 $10,000.00 at any time during the calendar year reported.

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Report-of-Foreign-Bank-and-Financial-Accounts-FBAR

[NikLR 13,230]

I think i have $3 in that account. Bet I'm safe. Lol

But this is a great reminder for people! Thank you!

[ChristinaG 91]

*only* if they exceed $10K at any point in the year?! Short of winning the lottery, I don't think I've ever had that in my lifetime!

One less report to file down the road

[templeton 120]

True, for some people it's not an issue. But for many others who were maybe more "established" in life before coming to the US, $10K is nothing - especially when you start talking about investments, retirement plans that can't be moved, maybe a rental property back home, etc.

The main point is that no one actually tells immigrants that this is a legal requirement, so many people don't even realize they need to be reporting those accounts.

[swji89 41]

Now... $10,000 by which exchange rate?

So, even if I manage to open a bank account and transfer it all over to the US this year, I'll have to fill one in next June because for x amount of weeks/months I had over $10,000 in my British bank account in the year July 2015-June 2016?

Edited June 19, 2015 by swji89

[Nich-Nick 3,354]

Now... $10,000 by which exchange rate?

The US treasury publishes an exchange rate you should use.

So, even if I manage to open a bank account and transfer it all over to the US this year, I'll have to fill one in next June because for x amount of weeks/months I had over $10,000 in my British bank account in the year July 2015-June 2016?

It's for the time period Jan 1, 2015 to Dec 31, 2015. You get six months to submit your FBAR.

On Jan 1, 2016 you are entering a new year that would be reported by June 30, 2017 if you had the foreign account still in 2016.

I wasn't sure about this question and a foreign account you closed by the end of the year. So I emailed. Got the reply Monday--

Dear Sir or Madam,

If the foreign financial account exceeded $10,000 at any time during calendar year 2014, before the account was closed than there is still a reporting requirement for that timeframe.

Patricia Reed

BSA Tax Law Specialist

SB/SE BSA Compliance Department

(The same will apply to you in calendar year 2015 with your report due by June 30, 2016.)

[swji89 41]

Fantastic, thanks.

I think my motto with all these forms will be "if in doubt, fill it out" haha

[Roy&Chanel 109]

What about joint accounts with parents?

[Nich-Nick 3,354]

What about joint accounts with parents?

Read the specific rules on IRS website. But it says if you have signature authority on x, y, or z type accounts. As with everything IRS there are many types of accounts and many exceptions. You've been alerted to FBAR, so now google it and see if the shoe fits.

Edited August 14, 2015 by Nich-Nick