FAQs - FBAR (Foreign Bank Account Reporting)
What is the due date for the FBAR report?
The annual due date for filing Reports of Foreign Bank and Financial Accounts (FBAR) for foreign financial accounts is April 15. This date change was mandated by the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, Public Law 114-41 (the Act). Specifically, section 2006(b)(11) of the Act changes the FBAR due date to April 15 to coincide with the Federal income tax filing season. To implement the statute with minimal burden to the public and FinCEN, FinCEN will grant filers failing to meet the FBAR annual due date of April 15 an automatic extension to October 15 each year (please note that this may change in future years).
What is a specified individual as it relates to FATCA?
A specified individual is:
- A U.S. citizen
- A resident alien of the United States for any part of the tax year (see Pub. 519 for more information)
- A nonresident alien who makes an election to be treated as a resident alien by filing a joint income tax return
A nonresident alien who is a bona fide resident of American Samoa or Puerto Rico (See Pub. 570 for definition of a bona fide resident)
What is a specified foreign financial asset as it related to FATCA?
Specified foreign financial assets include the following:
- Financial accounts maintained by a foreign financial institution
- The following foreign financial assets if they are held for investment and not held in an account maintained by a financial institution:
- Stock or securities issued by someone that is not a U.S. person (including stock or securities issued by a person organized under the laws of a U.S. possession)
- Any interest in a foreign entity
- Any financial instrument or contract that has an issuer or counterparty that is not a U.S. person (including a financial contract issued by, or with, a counterparty that is a person organized under the laws of a U.S. possession).
Does Form 8938 apply to me?
You must file Form 8938 if:
You are a specified individual (U.S. tax resident) and you have an interest in specified foreign financial assets required to be reported. In addition, the aggregate value of your specified foreign financial assets is more than the reporting thresholds that applies to you:
Specified individuals living in the U.S.:
- Unmarried individual (or married filing separately): Total value of assets was more than $50,000 on the last day of the tax year, or more than $75,000 at any time during the year.
- Married individual filing jointly: Total value of assets was more than $100,000 on the last day of the tax year, or more than $150,000 at any time during the year.
Specified individuals living outside the U.S.:
- Unmarried individual (or married filing separately): Total value of assets was more than $200,000 on the last day of the tax year, or more than $300,000 at any time during the year.
Married individual filing jointly: Total value of assets was more than $400,000 on the last day of the tax year, or more than $600,000 at any time during the year.
What types of foreign assets are reportable?
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What assets are not required to be reported on Form 8938?
The following financial accounts and the assets held in such accounts are not specified foreign financial assets and do not have to be reported on Form 8938:
· A financial account that is maintained by a U.S. payer, such as a domestic financial institution. In general, a U.S. payer also includes a domestic branch of a foreign bank or foreign insurance company and a foreign branch or foreign subsidiary of a U.S. financial institution.
Examples of financial accounts maintained by U.S. financial institutions include: U.S. mutual funds accounts, IRAs (traditional or Roth), Section 401(k) retirement accounts, Qualified U.S. retirement plans and Brokerage accounts maintained by U.S. financial institutions.
· A financial account that is maintained by a dealer or trader in securities or commodities if all of the holdings in the account are subject to the mark-to-market accounting rules for dealers in securities, or an election under section 475(e) or (f) is made for all of the holdings in the account.
· There are also exceptions for duplicative reporting (Forms 3520, 5471, 8621, 8865).
What foreign bank accounts must be declared on my tax return?
Generally, all foreign accounts for which you have a financial interest or signature authority will need to be reported on the FBAR, as long as the combined total exceeds $10,000 at any time during the year. In addition, these accounts are required to be reported on Form 8938 if they exceed the following thresholds:
Specified individuals living in the U.S.:
- Unmarried individual (or married filing separately): If the total value of assets was more than $50,000 on the last day of the tax year, or more than $75,000 at any time during the year.
- Married individual filing jointly: If the total value of assets was more than $100,000 on the last day of the tax year, or more than $150,000 at any time during the year.
Specified individuals living outside the U.S.:
- Unmarried individual (or married filing separately): If the total value of all assets was more than $200,000 on the last day of the tax year, or more than $300,000 at any time during the year.
- Married individual filing jointly: If the total value of assets was more than $400,000 on the last day of the tax year, or more than $600,000 at any time during the year.
All income from foreign accounts in which you have a financial interest must be reported on your individual tax return.