iceflow

Folks,
Did you use the following for FATCA and FBAR USD to GBP exchange?

http://www.fms.treas.gov/intn.html#rates

Also...and I may need to dig on this a bit more....when using the HR Block tax software it had two fields to fill in re: bank interest income. Field 1 - Country Code. Field 2 - Currency Code. I'll dig into the IRS site but my guess would be:
1. UK 2. GBP
Not sure if this is something just for H&R Block or whether this prints out on the forms. If you have a link to the codes that would be much appreciated.

Finally ..with all this FATCA paraphernalia, do you tend to e-file or post?

Thanks in advance.

FATCA seems very disturbingly strange....example....if I owned a car worth 50K....nobody wants to know....but if the 50K is in a bank....tell me all about it and I'll fine you if you don't.

JAJ

You're supposed to use Treasury end-year exchange rates for FBAR and form 8938 (FATCA), at least in so far as it relates to end-of year balances. HOWEVER, remember these are information reports and don't impact tax liability, so while you should try to get it right, there is a margin for error.

Doesn't the software have a mode which lets you look at the forms directly?
The two codes might be the same for the U.K. - remember, some countries out there share a currency (Euro, East Caribbean $, etc.)


E-file is normally fine. The form 8938 can be included in an e-filing of your tax return, and FBAR (separate form) now has to be e-filed.
No particular reason why you should have to mail it.


Actually, if you own a $50k car, your state vehicle licensing agency and property tax assessment authority (if applicable) will be very interested to know.

Basically, if you have a U.S. bank account the interest is reportable to the IRS. Directly, from the bank. That's the 1099 you receive. Obviously, most foreign banks don't do this reporting to the IRS. So in the past, many U.S. citizens have hidden assets in tax havens and not declared anything to the IRS. The aim of FATCA is to put a stop to that.

The IRS can get hold of banking details from places like the U.K., Australia, Canada etc. through existing tax agreements. However, FATCA not only makes these arrangements more formal, but puts a lot of pressure on banks in tax havens like Switzerland and the Cayman Islands to report U.S. account details to the IRS. In addition, U.S. taxpayers with foreign assets over a specific amount are expected to self-report their holdings.

The whole process should be respected, but that doesn't give a basis for a lot of the scaremongering you read about FATCA.

Incidentally, other countries also have foreign asset reporting. For example, if you were living in Canada, you might have to complete a form T1135 which is not all that different to the reporting required on form 8938.

theOAP

It's my understanding that France also requires foreign asset reporting, if you are living in France.

A small point: The operative words are living in (resident in).

That becomes a big point if you're not living in that country. RBT vs. CBT.

iceflow

Thanks Folks, I appreciate the responses. With that said though I've just found another rate on another post, this time published by the IRS. It won't make much odds to me but it will bring down the GBP to USD conversion.

http://www.irs.gov/Individuals/Inter...Exchange-Rates

MMcD

......Remember....for the FBAR form - you should use the US Treasury Dept exchange rate on 31 Dec. and not the "unofficial rate" shown on the IRS table.

MidAtlantic

For FBAR and 8938 (FATCA) you should use the Treasury end of year rate http://www.fms.treas.gov/intn.html#rates

The IRS Yearly Average Currency Rate may be used for, "income received evenly throughout the tax year" eg a regular pension payment. http://www.irs.gov/Individuals/Inter...Exchange-Rates

For irregular payments you should consistently use an exchange rate as at the date of payment. (I use www.xe.com where you can easily get the historical rates)

iceflow

Got it, thanks.