nun

Yes that would work. FBAR and FATCA are specifically for non-US accounts above a certain dollar amount. I came to the US out of college and took all the money out of my bank account in the UK. I didn't close my UK student bank account, but it had zero balance and after ten years of no activity the bank closed it for me

dreamercon

What do you do if you have signature authority, but no financial interest, in your employer's bank account? And if you have signed confidentiality agreements regarding disclosure of any balances in your employer's bank account?

I feel there is an argument that the FBAR violates the right to privacy guaranteed by the fourth amendment in these and other cases.

celticgrid

nun,

Please stop. The FBAR issue is a real issue for individuals, and FATCA is not. Go back to your original thread and re-read it. You are muddying the FBAR waters here.

http://britishexpats.com/forum/showthread.php?t=698597

FATCA is all about financial institutions. You do not have to file similar information twice.

Thanks.

nun

These waters are quite murky without me having to do much. I believe we had a difference over the application of withholding tax on overseas transfers to non-compliant FATCA foreign financial institutions. However, that is completely separate from the individual's requirement to comply with FATCA. I believe that FATCA is required for tax years after 18th March 2010, and the IRS is actively working on new forms. FATCA imposes a second filing requirement for foreign accounts in addition to FBAR. Section 511 of FATCA creates new IRC section 6038D, which requires U.S. taxpayers with foreign accounts and assets with an aggregate value exceeding $50,000 to report them on an informational return.

celticgrid

Apologies. Without any specifics from you I had assumed you were back on your 30% withholding issue. Which does not apply to individuals. I do think you have raised an important issue, but you are slightly misleading.

No. FBAR is for foreign accounts with a combined balance of over $10,000. The FATCA section you refer to is for foreign assets over a combined value of $50,000.

No. It is assets, not accounts.

Now that is a bit scary. Assets potentially include cash, foreign real estate, foreign stocks and shares, hedge funds, equity funds, and who knows what else.

I tripped over a reasonably understandable article on this. Link follows for those that care:

http://www.lexology.com/library/deta...6-a17d42d0d178

The article closes with the following text:

Many of the people on BE have some reading to do. Me included. We have 12 months to figure this out.

lansbury

That's where a good tax CPA is worth their annual fee. Mine works it out and makes sure I comply.

The $325 fee he charges to do our taxes, make sure we comply with all the regulations which get overlooked, and work out my quarterly Federal and State tax payments for the coming year on my UK income is money well spent.

penguinbar

So then would anyone with a house overseas have to file a FATCA form?

janette

The article I read says that US sourced foreign assets need to be reported under FATCA. If that is so, money and assets, eg. house in UK, would surely be exempt if the money came from UK income ? The balance in my UK account is a result of Uk income, which has already been taxed, and my house was paid for with a UK mortgage - there has never been any money sent from the US. I am not certain if this needs to be reported, although I do understand that I need to send an FBAR declaration and worldwide income and tax is submitted on the tax return. Am I missing something here?

nun

You bring up good questions, which is why this is all so worrying and confusing. The spirit of FBAR and FATCA is to get US tax payers to declare their foreign accounts and assets so that the correct tax can be assessed. If you are a US resident for tax purposes you have to declare your UK income and take tax exclusions or credits for UK tax paid. There will likely be no US tax due, but you have to tell the IRS about it as you are taxed on your worldwide income. Obviously FBAR will apply on $10k worth of foreign accounts. If you sell your UK home you'll have to satisfy both US and UK tax authorities about CGT. The UK/US tax treaty will probably have something to say about your situation, but if you are a US tax resident my inclination would be to declare the house on FATCA even if you paid for it with money you earned before you were subject to IRS regulations because they are going to want their cut of any CGT if you sell it. I'd hate to be hit with the fines.

nun

I believe so, of course ask your advisor

tht

I was going to start a new thread on this subject, but since this one is live I may as well post here.

I moved to the US in March 2010 on an L1A visa, and have been here since making me US resident. Accordingly I am filling a tax return for my worldwide income at present.

Reading the advise on the IRS website:

"Q. When is the FBAR due?

A. The FBAR is due by June 30 of the year following the year that the account holder meets the $10,000 threshold. The granting, by IRS, of an extension to file Federal income tax returns does not extend the due date for filing an FBAR. Filers cannot request an extension of the FBAR due date. See also Notice 2010-23."

So it is my read that I need to file my first FBAR by June 30th 2011, as I would have become eligible in 2010, my first year of residence in the US.

Am I missing something?

tht

lansbury

Correct

nun

No need to apologize, it's just important that we get FBAR and FATCA out in the open as the IRS doesn't let you use ignorance of the law as an excuse to avoid the fines.

EU_Girl

Out of subject (i.e. FBAR) sorry
Can someone please direct me to a website or explain FATCA please? Is it not yet in live i.e. no reporting is needed? If I own properties (real estate) in my home country (exceedig 50K) do I need to deal with FATCA then as well?
I think (if I stay in the US which hopefully turns out this year) I need to consult with a tax expert. However, I would appreciate if anyone who knows more than me direct me to a useful website(s) or assist me here.
Thank you!

EU_Girl

Thanks for your thoughts nun!