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Superannuation & FBAR

Superannuation & FBAR

Old Dec 11th 2015, 12:50 am
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Default Superannuation & FBAR

Hey folks! I have a quick question that I hope someone can help me with! Back story - I am from the UK (lived there my whole life), I moved to the USA and became a Green Card holder in Feb 2013 and began working around May 2013.

I filed my first Tax Return in April 2014 and my second Tax Return in April 2015.

I literally JUST found out about the FBAR and came running here.

Firstly, my bank accounts back home are still open - their accumulative value does take me over the 10k. I was advised by a CPA to use the new program on the IRS website (The Delinquent FBAR Submissions Procedures) https://www.irs.gov/Individuals/Inte...ion-Procedures ... and for me to file the 2 FBAR's that I should have filed - one for 2013 (filed in 2014) and one for 2014 (filed in 2015). So far so good?

The bank accounts are 0% interest accounts - so I have not made any "income" from them since moving here. They were simple savings accounts. So my CPA has told me that I do not need to re-file my taxes.

In terms of my bank accounts - One of my accounts is a Cash ISA, that has £0 in it - nor has it ever had any money in it. I opened it when I was 18 and not 1 penny has been deposited into it. Do I need to report that account on the FBAR?

Finally, and this is where I am most confused ... I am a teacher, and taught in the UK for 5 years before moving here. As a result I had superannuation deductions taken out of my pay slip each month. I have no idea how the teacher superannuation works, its value and I do not receive statements from it. I have read mixed reports about whether this needs to be included on the FBAR. It seems a very grey area. The most recent post I found here was actually from 2012, and the laws may have changed since then! If it superannuation does have to be reported, how would it even be done!?!? ... It is not as if I can provide a bank account # for it, or even have any idea what value it is worth.

Other than the bank accounts and the superannuation, I have no other "assets" back home that I am aware of.

As I understand things right now - all I need to do is file the delinquent FBAR's (I do not need to file form 8938 I think?), providing the information regarding my bank accounts. I am stuck on the superannuation part of it

Any advice would be greatly appreciated! I have lost enough sleep over this
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Old Dec 11th 2015, 2:56 am
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Default Re: Superannuation & FBAR

I believe the Teachers Superannuation scheme is a defined benefit plan and therefore you have no control over the money, there is no account that you hold and you have no signature authority. Therefore, there is no need to report it on FBAR or include it in any FBAR calculations.

FYI you should understand the nature of all your accounts and pensions from a basic financial management standpoint and also for you to have any chance of dealing with them correctly on your taxes. I recommend you read up about teachers superannuation.

Last edited by nun; Dec 11th 2015 at 3:01 am.
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Old Dec 11th 2015, 3:39 am
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Default Re: Superannuation & FBAR

Originally Posted by nun View Post
I believe the Teachers Superannuation scheme is a defined benefit plan and therefore you have no control over the money, there is no account that you hold and you have no signature authority. Therefore, there is no need to report it on FBAR or include it in any FBAR calculations.

FYI you should understand the nature of all your accounts and pensions from a basic financial management standpoint and also for you to have any chance of dealing with them correctly on your taxes. I recommend you read up about teachers superannuation.
Thank you Nun! I have spoken to an American currently living in the UK - he gave me the same advice as you. He has a similar type UK pension that he does not include on his FBAR.

I am sure my "case" is pretty straight forward, but I just want to make sure I get back onside and stay there!

So does everything else sound OK with what I have said?

1. Use the Delinquent FBAR Submissions Procedures" https://www.irs.gov/Individuals/Inte...ion-Procedures

and finally

2. Report the bank accounts that I have? (Do I report the account that has never had any money in it?)


PS. Thank you for the advice - and I plan on finding out more about my accounts etc. Honestly, up until now I have never really had too! Things were always pretty straight forward for me back in the UK!
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Old Dec 11th 2015, 11:37 am
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Default Re: Superannuation & FBAR

I have UK superannuation and do exactly as Nun explained.
On the FBAR website there is a drop-down menu giving reasons for filing late. One option is "Did not know that I had to file" which fits your case.
Whether you have to include the $0 account, who knows, but I would do it to avoid any suggestion of hiding an account.
Don't forget Form 8938 (which goes with your 1040) if you qualify. The superannuation does go on that.
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Old Dec 11th 2015, 1:50 pm
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Default Re: Superannuation & FBAR

Originally Posted by SP84 View Post
Thank you Nun! I have spoken to an American currently living in the UK - he gave me the same advice as you. He has a similar type UK pension that he does not include on his FBAR.

I am sure my "case" is pretty straight forward, but I just want to make sure I get back onside and stay there!
You should be very careful with advice you get on a forum as you don't know who's giving it. So do your own research. A US CPA should be able to give you the correct advice if you are unsure.
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Old Dec 11th 2015, 4:16 pm
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Default Re: Superannuation & FBAR

Originally Posted by MidAtlantic View Post
I have UK superannuation and do exactly as Nun explained.
On the FBAR website there is a drop-down menu giving reasons for filing late. One option is "Did not know that I had to file" which fits your case.
Whether you have to include the $0 account, who knows, but I would do it to avoid any suggestion of hiding an account.
Don't forget Form 8938 (which goes with your 1040) if you qualify. The superannuation does go on that.
Thank you folks - I have been speaking to a CPA here, but it has been tough finding someone that is 100% confident in FBAR/overseas filing. The guy I am currently working with has been filing for overseas clients for years (including those in the UK). He informed me that I should use the "Delinquent FBAR Filing Procedures" as outlined above.

Just on file 8938 - when exactly would the Superannuation go on that? I know I have to file that if the Foreign Asset is more than $50,000. I taught back home for 5 years, so I highly doubt is it anywhere near that value. Should I be checking each year for its estimated value and then file that when the time comes?

Cheers folks!
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