With the FBAR buzz flying around many questions still surround FBAR itself.
Much has been written and here are some simple answers to common questions asked regarding FBAR requirements.
These Q&A’s help to explain the What, Who and the Where of FBAR.
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1. Who Must File an FBAR form?
Some United States persons are required to file an FBAR if:
1. The United States person had a financial interest in or signature authority over at least one financial account located outside of the United States;
and
2. The aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year to be reported.
United States person means:
United States citizens; United States residents; entities, including but not limited to, corporations, partnerships, or limited liability companies created or organized in the United States or under the laws of the United States; and trusts or estates formed under the laws of the United States. Definition per IRS Tax Law.
2. What are the exceptions to the Reporting Requirement of FBAR
There are filing exceptions for the following United States persons or foreign financial accounts:
1. Certain foreign financial accounts jointly owned by spouses;
2. United States persons included in a consolidated FBAR;
3. Correspondent/Nostro accounts;
4. Foreign financial accounts owned by a governmental entity;
5. Foreign financial accounts owned by an international financial institution;
6. IRA owners and beneficiaries;
7. Participants in and beneficiaries of tax-qualified retirement plans;
8. Certain individuals with signature authority over but no financial interest in a foreign accounts
10.Trust beneficiaries; and
11.Foreign financial accounts maintained on a United States military banking facility.
You should call our firm for a comprehensive list of questions we will review with you.
Reporting and Filing Information for FBAR
A person who holds a foreign financial account may have a reporting obligation even though the account produces no taxable income.
The FBAR is not filed with the filer’s federal income tax return.
The granting, by the Internal Revenue Service, of an extension to file federal income tax returns does not extend the due date for filing an FBAR. You may not request an extension for filing the FBAR.
The FBAR is an annual report and must be received by the Department of the Treasury in Detroit, MI, at one of the two addresses below, on or before June 30th of the year following the calendar year being reported.
File by mailing the FBAR to:
United States Department of the Treasury
P.O. Box 32621
Detroit, MI 48232-0621
If an express delivery service is required for a timely filed FBAR, address the parcel to:
IRS Enterprise Computing Center
ATTN: CTR Operations Mail room, 4th Floor
985 Michigan Avenue
Detroit, MI 48226
FBAR – What, Who and Where – IRS Tax Experts – Free Advice – Attorneys, Former IRS
