FBAR

[rt-texas]

Considering staying for a couple of years outside the good old USA so contemplating filing for temporary residency in our current location. Will have to fund a bank account down here to do this.

Anyone on here that lives outside the US and has to file FBAR?

Just looking for a general take on it, issues etc. Have read a lot of the IRS info so looking from someone else's experience.


Thanks in advance.

 

[martyp]

I live in Thailand and have filed an FBAR for the past three years. It is an online form. I don’t recall that there was anything difficult about it. Thanks for reminding me about it for this year though

https://www.irs.gov/businesses/smal...t-of-foreign-bank-and-financial-accounts-fbar

 

[rt-texas]

I live in Thailand and have filed an FBAR for the past three years. It is an online form. I don’t recall that there was anything difficult about it. Thanks for reminding me about it for this year though

https://www.irs.gov/businesses/smal...t-of-foreign-bank-and-financial-accounts-fbar

Thank you sir. Appreciate the input. I have scrolled thru the form and there are a few things I not sure of but obviously have some time to figure it out since next year would be the first time I would need to report.

I sent an email to my accountant back in the states to see if he has any clients he does this for and if he has any opinions.

 

[target2019]

When you have over $10,000 overseas (total) in banks, institutions, etc., you complete Form 8938 Statement of Specified Foreign Financial Assets, breaking out each account.

After filing your 1040, complete the FinCEN Form 114, Report of Foreign Bank and Financial Accounts and submit that online.

I've been doing the 8938's for a while. The FinCEN looks like the same information you've included on Form 8938. Of course there's no certainty in anything so follow all the research on IRS and FinCEN sites.

 

[rt-texas]

When you have over $10,000 overseas (total) in banks, institutions, etc., you complete Form 8938 Statement of Specified Foreign Financial Assets, breaking out each account.

After filing your 1040, complete the FinCEN Form 114, Report of Foreign Bank and Financial Accounts and submit that online.

I've been doing the 8938's for a while. The FinCEN looks like the same information you've included on Form 8938. Of course there's no certainty in anything so follow all the research on IRS and FinCEN sites.

Thank you. I knew about FBAR Form 114, wasn't aware of form 8938. Appreciate the heads up.

 

[martyp]

Thank you sir. Appreciate the input. I have scrolled thru the form and there are a few things I not sure of but obviously have some time to figure it out since next year would be the first time I would need to report.

I sent an email to my accountant back in the states to see if he has any clients he does this for and if he has any opinions.

I did my FBAR this morning. I have one bank account that applies. My financial life is pretty simple.

 

[Alan]

I have been doing FBARs for many years, they are easy to do.

Form 8938 is not usually needed for someone residing overseas as the reporting limits are much, much higher than the $10k FBAR limit. For a married couple the limit for IRS 8938 reporting is $400k in accounts on Dec 31st or $600k at any point during the year.

We’ve only had to file 8938 forms once, and that is because of the dumb math the IRS uses. The year we bought our house I transferred the money over from the USA and then put it in a savings account until needed. Even though we never actually exceeded the limit the same money is counted twice as it was in different accounts at different times during the year. FBAR calculations are the same flakey arithmetic.

https://www.irs.gov/businesses/corporations/summary-of-fatca-reporting-for-us-taxpayers

 

[rt-texas]

Thank you both martyp and Alan.

We will have to have two bank accounts. Initial deposit of 60k into one account and every month $2500 has to transfer to a "spending" bank account. So we will have to report both accounts as I understand it.

 

[Alan]

Thank you both martyp and Alan.

We will have to have two bank accounts. Initial deposit of 60k into one account and every month $2500 has to transfer to a "spending" bank account. So we will have to report both accounts as I understand it.

Yes. I keep a spreadsheet recording the highest balance of each account as per my monthly statements. On the FBAR report list every account and its highest balance during the year. The treasury issues the exchange rate to be used.

https://www.irs.gov/individuals/international-taxpayers/yearly-average-currency-exchange-rates

Note that once the $10k threshold is reached then ALL foreign bank accounts should be reported including those with small balances.

 

[RetireeRobert]

As a newbie, I was unfamiliar with acronym "FBAR". Looked in forum's list of abbreviations and did not find it. First, it reminded me of a military abbreviation with just one additional letter in it.

 

[Sunset]

As a newbie, I was unfamiliar with acronym "FBAR". Looked in forum's list of abbreviations and did not find it. First, it reminded me of a military abbreviation with just one additional letter in it.

It has much the same meaning

 

[Sunset]

Yes. I keep a spreadsheet recording the highest balance of each account as per my monthly statements. On the FBAR report list every account and its highest balance during the year. The treasury issues the exchange rate to be used.

https://www.irs.gov/individuals/international-taxpayers/yearly-average-currency-exchange-rates

Note that once the $10k threshold is reached then ALL foreign bank accounts should be reported including those with small balances.

Yes - I report one account that has $0.05 in it. Due to laws in that country I cannot close the account, which I've tried to do just to not have to bother with it.

I really hate the dumb math , move $30,000 between 4 accounts and suddenly it looks like I have $120,000 in a foreign account

 

[braumeister]

As a newbie, I was unfamiliar with acronym "FBAR". Looked in forum's list of abbreviations and did not find it.

A full explanation was linked in post #2, so one might wonder why you had to look elsewhere.

 

[rt-texas]

Yes. I keep a spreadsheet recording the highest balance of each account as per my monthly statements. On the FBAR report list every account and its highest balance during the year. The treasury issues the exchange rate to be used.

https://www.irs.gov/individuals/international-taxpayers/yearly-average-currency-exchange-rates

Note that once the $10k threshold is reached then ALL foreign bank accounts should be reported including those with small balances.

Great idea Alan. I love to spreadsheet everything anyway. I'll do that and maybe some screenshots just to keep for my records.


Appreciate all the help everyone.

 

[RetireeRobert]

A full explanation was linked in post #2, so one might wonder why you had to look elsewhere.

I did not go elsewhere like clicking on the link given in the post, as I was leary of naked links. You mean maybe the link had the explanation? I should have gone to the link? Otherwise I saw no explanation in the language of the post itself.

Just wondering?

 

[rt-texas]

I did not go elsewhere like clicking on the link given in the post, as I was leary of naked links. You mean maybe the link had the explanation? I should have gone to the link? Otherwise I saw no explanation in the language of the post itself.

Just wondering?

Report of Foreign Bank and Financial Accounts (FBAR)

You are required to fill out FBAR form if at anytime in the year you have over 10k total value in any foreign corp, bank account(s), trusts, retirement accounts etc. Due April 15, but you do not file with your income tax. Totally separate.


As I stated above we are looking to open a 60k "trust" bank account to qualify for temporary residency. Each month $2,500 get transferred to a separate account for spending purposes. So I would have to report both accounts since we would have over 10k total.


Also, this is required if you have over 10k at any point in the year. Penalties are high as I read them.

 

[RetireeRobert]

Thanks so much rt-texas. Your kind explanation much appreciated, as is your taking the time for something might otherwise seem so obvious. Now it is all very clear.

 

[oiseux]

Just a quick note to add that this applies even before or without having established residency. I must do so for the account I maintain for a 2nd home overseas.

 

[rt-texas]

Just a quick note to add that this applies even before or without having established residency. I must do so for the account I maintain for a 2nd home overseas.

Thanks for the heads up. Actually learned about FBAR from an American friend who bought a house inside a corporation outside the US. He knew nothing about FBAR and was only using it as a getaway place. Got his hand slapped for several years of no FBAR reporting.