larrabee

The FBAR is not part of the tax return and applies wherever in the world you live if you meet the criteria to be required to file.

jemima55

OK, we do it at the same time as the jolly old tax return and it goes to the US accountants. My understanding is you declare the maximum amount you've held in your non US bank accounts. Something to do with making sure you aren't money laundering, and it isn't a tax liability.
I will be glad when we are back to only having the tax return headache once a year!

Brigette

Trust me I'm leaning against doing it. Too much of a hassle

Brigette

I will have to do one next year. Hopefully after that I will never have to do one again

penguinsix

Hi.

A couple of things.

First, and MOST IMPORTANT. This year the deadline is JUNE 28, FRIDAY and it has to be RECEIVED in Detroit by that date, not merely postmarked by that date like a tax return. If you haven't filed, you need FEDEX or something like that to get it in there by the deadline.

* FBAR runs the calendar year Jan/Dec, so you can put the money anytime before/after June and it won't make a difference.

* You must fill in the numbers using USD. You can use the currency conversion chart that is online from the US Treasury for 2012 or a few other sources.

* While it does not have to be filed with your taxes, I believe there is a checkbox on the tax return that indicates you will be filing this form (not sure).

You have to file an FBAR if, at any time during the year, you had more than $10,000 USD in a bank account under your control. If you have two bank accounts, then you add them together to find the aggregate amount to see if > $10,000. If you have 3, you add them together....etc.

Once you cross the $10,000 threshold, you have to report ALL foreign bank accounts. So if you have $10,001 in account one in the UK, but $1 in account two in France and $20 in account three in the Caymans, you have to report accounts 1, 2, and 3 on the FBAR. Technically, even if you only went over the threshold for a few minutes (i.e. you were just transferring the money through this account to another) then you still would have a reportable account.

Please note that if you have a significantly higher amount of money in a bank account, say more than $50,000 or more than $250,000 then you need to consider filing a FATCA report. This is filed at tax return time I believe. The exact amount that triggers this depends on your location and marital status on a sliding scale.

windsong

Very interesting!! Even if you were to not have a bank account in the UK, so long as you have "signing authority" on an account, you have to complete this.

I am glad I saw this thread because I didn't realize any of this was necessary unless you had income over a certain level but it seems it is necessary for everyone to complete it. What I am not sure about is if this is only necessary for small business/those self-employed or if you have to complete it even if you work for someone else. It's confusing because the IRS doc linked above says that "any individual" who meets the criteria must file but the link itself is for small businesses.

britwhore

Not just small business. Every American citizen has to file if they meet the criteria.

larrabee

Not just citizens "United States persons."

It's important to be aware too that if a permanent resident leaves the US with the intention of simply allowing their green card to lapse, it will for immigration purposes, but not for the purpose of the FBAR reporting requirement, nor for the obligation to file tax returns as even if you live abroad you would still be considered a US tax resident.

To resolve this the green card must be officially surrendered.

http://london.usembassy.gov/dhs/uscis/abandon.html

8854 may also be required to be filed depending on your situation.

http://www.irs.gov/uac/Form-8854,-In...tion-Statement

larrabee

I know that might seem confusing with the FAQ appearing under that heading but it does apply to individuals too and actually has nothing to do with income.

You could be making not a penny in income in a current account with a balance of $10,000 and would still be required to file, actually you could have less than $10,000 in your own name but have power of attorney over your parents affairs, for example, and still be required to file.

You could, I suppose, leave most of your money in the USA and only transfer small amounts, never exceeding $10,000 combined balance in your non US accounts at any time during the year but that would be a lot more work than just completing the FBAR once a year in my opinion.

I came across that link when I was doing my own research and I posted it because it clarifies some of the points that I was questioning better than the instructions which come with the form itself.

windsong

I thought the IRS was on the east coast, not the midwest.

penguinsix

The IRS is everywhere. :-)

Actually for a large number of paperwork processing elements of the US government, the processing centers are outside of the DC-area as the rents are too expensive and it's easier to be more centrally located to the rest of the country than just on one crowded coast.

Here are the addresses to send in your documents:

U.S. Department of the Treasury
P.O. Box 32621
Detroit, MI 48232-0621

If an express delivery service is used, send completed forms to:

IRS Enterprise Computing Center
ATTN: CTR Operations Mailroom, 4th Floor
985 Michigan Avenue
Detroit, MI 48226

Brigette

This is correct and many forget to surrender their green card which then causes a lot of trouble

Cape Blue

And note that FATCA applies to a range of foreign assets and not just cash - i.e. if you have a UK house or a UK private pension pot and so-on.

nun

A house or any real property is not reportable under FATCA. If you have a mortgage with a foreign institution I'd probably report that.

Cape Blue

Correct - I have a UK property that's held in a Ltd Company name and I'd forgotten that it was the Ltd Company bit that made it reportable.

These links are useful.

http://www.irs.gov/Businesses/Typeso...bleonForm-8938

http://www.irs.gov/Businesses/Corpor...-Form-8938#Q12