Reminder:FBAR due 6/30 for those in US in 2015 who had UK accounts

[Nich-Nick 3,354]

If you had a foreign bank account in the UK during 2015 and were also a US person in 2015, check to see if you are required to file FBAR to report your foreign account(s). This is NOT A TAX. It is a report to the US Treasury and carries a possible fine if you don't comply.

So to give a very basic summary to those who immigrated 2015 or earlier--

If at anytime during 2015, you had financial accounts or investments with the total value (add them up) of $10,000 or more you report. Understand that is only £6750 in pounds sterling to meet the threshold.

We just did it online starting here https://www.fincen.gov/forms/bsa_forms/fbar.html

The detailed instructions on if you are required to do it and how to do it are here https://www.fincen.gov/forms/files/FBAR%20Line%20Item%20Filing%20Instructions.pdf

My take way from the instructions that might be useful:

• Don't use dashes, spaces, commas, or parentheses in your phone number, SSN, bank account number, value of account, or UK postal code. Just put a string of numbers.
• Birthdate format is MM/DD/YYYY. Use the /.
• Round up cents to the next dollar, even if it's only a penny.
• Use the US Treasury exchange rate for 12/31/2015 for your conversion of £ to $.
• Report the highest value each account had during 2015, even if you ended up with zero by the end of 2015.

I have already looked up the exchange rate from the Treasury Department.

It is 0.6750.

So if your account was £8000:

£8000 [divided by] 0.6750 [equals] $11,851.85.

Fill in the FBAR with 11852.

You will need to know the proper name of the bank, their physical address, and your account number.

If you had over the threshold at one bank and a small amount at another bank, the small amount gets reported as well because you already went over, so you have to tell about ALL foreign money once you meet the filing threshold.

If you had $5000 (£3375) at one bank and $5000 (£3375) at another, your total qualifies you to file, even though neither account was $10k.

If you held the account only in your name, then Part 2 of the FBAR suffices. If it was a joint account then there's another section for that.

[Nich-Nick 3,354]

Yikes!!!

Penalties

A person who is required to file an FBAR and fails to properly file may be subject to a civil penalty not to exceed $10,000 per violation. If there is reasonable cause for the failure and the balance in the account is properly reported, no penalty will be imposed. A person who willfully fails to report an account or account identifying information may be subject to a civil monetary penalty equal to the greater of $100,000 or 50 percent of the balance in the account at the time of the violation. See 31 U.S.C. section 5321(a)(5). Willful violations may also be subject to criminal penalties under 31 U.S.C. section 5322(a), 31 U.S.C. section 5322(b), or 18 U.S.C. section 1001.

If you have a complicated financial situation, read the detailed instructions. I posted a link. My husband has one plain old UK bank account held in only his name. He lives in the US. I didn't read the finer points of the rest of it so have no expertise.

[yuna628 9,671]

Okay, some questions here hopefully you can answer, because wow those instructions...

If my husband had over $10,000 in 2015 BEFORE entering the USA, but had less than $10,000 when he entered the USA in that same year, does he still need to file? If he does need to file, what evidence does he need to provide? Does he still fall under these FBAR regulations if he resided in the US, but we were not required to file taxes (thus not defined as a resident for tax purposes yet)? He did not receive his green card until this month, and he didn't receive his EAD until 2016... so was he still considered a US person?

Edited June 24, 2016 by yuna628

[yuna628 9,671]

Apologies for double post: If I am understanding correctly, since he did not obtain an EAD until 2016 and a green card until 2016, then would not be classified as a US person in 2015 (even though he came on his K1) for FBAR, and he would not need to file this?

[Nich-Nick 3,354]

Yes to foreign money anytime during the year if he was also a "US person" during the same year. There's definitions by the IRS of what makes you a US person for taxes and this FBAR.

Green card

Physical presence like 183 days in US...don't quote me on days.

Electing to be a US person so you can file a joint 2015 tax return with American spouse.

If none of the above apply, then I don't think you have to file FBAR for 2015.

Edited June 24, 2016 by Nich-Nick

[yuna628 9,671]

Yes to foreign money anytime during the year if he was also a "US person" during the same year. There's definitions by the IRS of what makes you a US person for taxes and this FBAR.

Green card

Physical presence like 183 days in US...don't quote me on days.

Electing to be a US person so you can file a joint 2015 tax return with American spouse.

If none of the above apply, then I don't think you have to file FBAR for 2015.

Okay so I guess we don't need to then. I just want to do this right and not have anything messed up. He was very worried there when he read this lol.

[Nich-Nick 3,354]

Okay so I guess we don't need to then. I just want to do this right and not have anything messed up. He was very worried there when he read this lol.

Yes. I know you had no greencard, no US income, were only in US around 90 days. So if you didn't file a joint tax return, then I would say FBAR 2015 does not apply to you. But you probably should have filed a joint return just for the money. If you are considering amending to joint to get some extra refund, you might want to look at FBAR. IT's pretty easy to do.

[2ndMessiah 184]

But the instructions say this.

Who Must File an FBAR. A United States person that has a financial interest in or signature authority over foreign financial accounts must file an FBAR if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year. See General Definitions, to determine who is a United States person.

So say your account never exceeded say $7000 in a financial year , I would read that as not having to file at all.

Edited June 25, 2016 by 2ndMessiah

[Nich-Nick 3,354]

But the instructions say this.

Who Must File an FBAR. A United States person that has a financial interest in or signature authority over foreign financial accounts must file an FBAR if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year. See General Definitions, to determine who is a United States person.

So say your account never exceeded say $7000 in a financial year , I would read that as not having to file at all.

Correct. If you never had $10,000 (£6750) in 2015, it doesn't apply to you. I believe Yuna may have exceeded the value but didn't know if she was a "US person" having arrived as a K1 late in the year.

[2ndMessiah 184]

Correct. If you never had $10,000 (£6750) in 2015, it doesn't apply to you. I believe Yuna may have exceeded the value but didn't know if she was a "US person" having arrived as a K1 late in the year.

Ok Gotcha. I had a panic when I seen this.... For a moment I thought I was in deep doodoo.

[yuna628 9,671]

Right, I think we certainly exceeded the 10k, but if I am to take the rules of the IRS as they quantify them, my husband would not have been classed as a ''US Person'' for 2015. Am I to take it that for when the FBAR for 2016 is available we also wouldn't need to file it. as my husband would have it well below the threshold?

[Nich-Nick 3,354]

Right, I think we certainly exceeded the 10k, but if I am to take the rules of the IRS as they quantify them, my husband would not have been classed as a ''US Person'' for 2015. Am I to take it that for when the FBAR for 2016 is available we also wouldn't need to file it. as my husband would have it well below the threshold?

2016 he is a US person, but if his foreign account totals were below the $10k in all of 2016, then no FBAR.