The FBAR Filing Requirements.
There is much information buzzing around about FBAR. Most taxpayers are completely uninformed regarding FBAR tax issues and filing requirements.
With the IRS now having over $500 Million in new resource money as a result of the Health Care plan, taxpayers need to become aware of FBAR because the IRS will turn a lot of their time and attention to FBAR and the tax issues related to this program because of the huge revenue FBAR has raised.
To date, FBAR has brought in some $4.4 billion large ones with 33,000 filing over the past three years.
As Former IRS Agents, Tax Attorneys, Lawyers and CPA’s we are FBAR and Expatriate tax experts.
We offer a no cost professional tax consultation for FBAR filing consultations.
We can answer all your questions.
Here are some common questions asked of the FBAR filings.
1. What is an FBAR?
An FBAR is a Report of Foreign Bank and Financial Accounts. The form number is TD F 90-22.1
2. Who must file an FBAR?
Any United States person who has a financial interest in or signature authority or other authority over any financial account in a foreign country, if the aggregate value of these accounts exceeds $10,000 at any time during the calendar year.
3. What is a foreign country?
A “foreign country” includes all geographical areas outside the United States, the commonwealth of Puerto Rico, the commonwealth of the Northern Mariana Islands, and the territories and possessions of the United States (including Guam, American Samoa, and the United States Virgin Islands).
4. What is a United States person?
“United States person” includes a citizen or resident of the United States, a domestic partnership, a domestic corporation, and a domestic estate or trust. See Announcement 2010-16.
5. Is a single-member LLC, which is a disregarded entity for U.S. tax purposes, a United States person for FBAR purposes?
Yes, the tax rules concerning disregarded entities do not apply with respect to the FBAR reporting requirement. FBARs are required under Title 31, not under any provisions of the Internal Revenue Code.
6. What constitutes signature or other authority over an account?
A person has signature authority over an account if such person can control the disposition of money or other property in it by delivery of a document containing his or her signature (or his or her signature and that of one or more other persons) to the bank or other person with whom the account is maintained.
Other authority exists in a person who can exercise power that is comparable to signature authority over an account by direct communication to the bank or other person with whom the account is maintained, either orally or by some other means.
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