FinCen FBAR

[EatBulaga 317]

Greetings all,

I have 2 scenario to see if the FBAR needs to be filed?

https://www.fincen.gov/report-foreign-bank-and-financial-accounts

 

1. LPR working in the US but transfers funds to foreign accounts, but keeps the aggregate balance below 10,000 the whole time.

 

2. LPR working in the US for foreign company with funds deposited to foreign accounts, but keeps the aggregate balance below 10,000 the whole time.

 

In both cases, the total earnings over the year can surpass 10K, but the aggregate balance stays below 10K. I understand in both cases, the earnings will be reported to the IRS, but does the FBAR need to be filed for either or both cases? Thanks in advance.

[Lil bear 4,261]

1 hour ago, EatBulaga said:

Greetings all,

I have 2 scenario to see if the FBAR needs to be filed?

https://www.fincen.gov/report-foreign-bank-and-financial-accounts

 

1. LPR working in the US but transfers funds to foreign accounts, but keeps the aggregate balance below 10,000 the whole time.

 

2. LPR working in the US for foreign company with funds deposited to foreign accounts, but keeps the aggregate balance below 10,000 the whole time.

 

In both cases, the total earnings over the year can surpass 10K, but the aggregate balance stays below 10K. I understand in both cases, the earnings will be reported to the IRS, but does the FBAR need to be filed for either or both cases? Thanks in advance.

I believe the wording is something like “ if the balance in the foreign account.. or the total of the  balances in all accounts if more than one..  exceeds $10000 usd at ANY time “ then fbar must be filed   So it doesnt look at ins and outs but only at the daily total in the account.  Given your info in the post, correct. Never have a daily balance over $10000 and you don’t need an FBAR for that year 

[mam521 2,113]

1 hour ago, Lil bear said:

I believe the wording is something like “ if the balance in the foreign account.. or the total of the  balances in all accounts if more than one..  exceeds $10000 usd at ANY time “ then fbar must be filed   So it doesnt look at ins and outs but only at the daily total in the account.  Given your info in the post, correct. Never have a daily balance over $10000 and you don’t need an FBAR for that year 

This is how I interpret the FBAR rules myself. 

[Tesco 71]

If you have $10,000 either real or on paper, (you transfer monies from accounts - double counting). You will need to file FinCEN 114.