FBAR

Old Mar 11th 2019, 6:54 pm
  #1  
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Default FBAR

Hello everyone.
I am so very glad to find you all here because I am freaking out and really need support.
I am a British who has been living in US since 2001.
While I have filed taxes every year (very small income) I was not aware that I should report my bank accounts in UK.
I now know better and am trying to resolve it. The aggregate is about $11000 and income per year has been under $80 in UK.
Here are my questions:

1- What is the best way to comply with FBAR reporting requirements while avoiding fines and audits.
2- I own some shares in UK, under my name with a fluctuating value of under $12000 in a company. Do I need to report that?

Thanking you all
Very anxious Jim
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Old Mar 12th 2019, 12:14 am
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Default Re: FBAR

Jim
Don't panic. You'll be fine
Absorb this
https://www.irs.gov/individuals/inte...ion-procedures

And even if they want too penalize you for the small amount of income they won't be draconian.
But you can use this too...
https://www.aicpa.org/interestareas/...abatement.html

Take your time, don't rush, you'll feel a lot better when you've done it. It's more or less routine boring paperwork.
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Old Mar 13th 2019, 12:54 pm
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Default Re: FBAR

I found that paying a CPA who has international tax treaty experience resolved my anxiety, A LOT
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Old Mar 13th 2019, 2:54 pm
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Default Re: FBAR

I found being poor works well also
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Old Mar 13th 2019, 3:47 pm
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Default Re: FBAR

Yes, but some of us don't have that luxury.
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Old Mar 13th 2019, 10:59 pm
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Default Re: FBAR

You can share the wealth ... my bank account number is # 012398475; Bank of Withdrawal.

FBAR are only required if you have over $10,000 in the account .... thankfully I don't have to worry ... I'm a USC with only US assets ;-)
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Old Mar 14th 2019, 1:02 pm
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Default Re: FBAR

My CPA charges $700/return, and uses 15-30 mins time of an international tax attorney to help with the filing. I do not think that is too bad?

If stock options come into play it will rise to $1000-$1500. Even so it's cost:benefit still..
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Old Mar 14th 2019, 1:03 pm
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Default Re: FBAR

p.s. I now realize the wit may have flown over my head on this post..

However, still interested in peoples thoughts re: my CPA rate
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Old Mar 14th 2019, 6:07 pm
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Default Re: FBAR

Originally Posted by PetrifiedExPat View Post
My CPA charges $700/return, and uses 15-30 mins time of an international tax attorney to help with the filing. I do not think that is too bad?

If stock options come into play it will rise to $1000-$1500. Even so it's cost:benefit still..
In a recent survey of ~10,000 US expats living abroad (using international CPAs):
62% paid $500 or more for return preparation.
Only 38% paid less than $500.
31% paid $1,000 or more for return preparation.
6% paid $5,000 or more for return preparation.
2% paid $10,000 or more for return preparation.

https://www.democratsabroad.org/carm...d_u_s_taxation
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Old Mar 14th 2019, 6:09 pm
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Default Re: FBAR

Originally Posted by theOAP View Post
In a recent survey of ~10,000 US expats living abroad (using international CPAs):
62% paid $500 or more for return preparation.
Only 38% paid less than $500.
31% paid $1,000 or more for return preparation.
6% paid $5,000 or more for return preparation.
2% paid $10,000 or more for return preparation.

https://www.democratsabroad.org/carm...d_u_s_taxation
Thank you for that, very useful (and somewhat reassuring!)
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Old Mar 15th 2019, 1:46 pm
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Default Re: FBAR

The point to remember is if you have more than $10,000 AGGREGATE value accounts overseas, you must report ALL overseas accounts, regardless of value.

So basically:

Example 1:
$5,000 in one bank account
$5,000 in another bank account.
$1 in another bank account.

Report all three accounts.

Example 2:
$9,990 in one bank account
$9 in another bank account

No need to report anything.

Example 3:
$10,001 in one bank account
$1 in another
$0.23 in another
$0.00 in another

Report all bank accounts.

The other bit is if at anytime during the year you reach the $10,000 threshold, you need to report (even if it is just for 1 hour while you move funds around). Kind of annoying.
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Old Mar 15th 2019, 2:17 pm
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Default Re: FBAR

Originally Posted by penguinsix View Post
The point to remember is if you have more than $10,000 AGGREGATE value accounts overseas, you must report ALL overseas accounts, regardless of value.

So basically:

Example 1:
$5,000 in one bank account
$5,000 in another bank account.
$1 in another bank account.

Report all three accounts.

Example 2:
$9,990 in one bank account
$9 in another bank account

No need to report anything.

Example 3:
$10,001 in one bank account
$1 in another
$0.23 in another
$0.00 in another

Report all bank accounts.

The other bit is if at anytime during the year you reach the $10,000 threshold, you need to report (even if it is just for 1 hour while you move funds around). Kind of annoying.
This made me chuckle. Despite the fact I am happy with my CPA, I argued with them (successfully) that aggregate balances are important, not individual. They kicked back somewhat, then looked red in the face when the tax attorney confirmed.
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Old Mar 15th 2019, 2:23 pm
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Default Re: FBAR

Hopefully O.P. is ok.
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