Offshore Accounts
offshore account
The report Report of Foreign Bank and Financial Accounts is due to the Treasury Department each year by June 30th if you held a financial interest or signature authority over a foreign account. This includes bank accounts, brokerage accounts, insurance policies with cash value (like whole life), annuities, mutual funds, etc. It also includes corporate accounts that you have signature authority over, or accounts for other individuals that you control.
According to a FinCEN ruling last year, an account with Gold Money or another such organization that is in the business of purchasing and storing gold (especially unallocated) should also be reported.
You are exempt from filing an FBAR if the aggregate value of all accounts was less than $10,000 for the entire year. If at any point during the year the aggregate amount exceeded $10,000, even for a day, the FBAR must be filed. To be clear, the FBAR is filed for the previous year’s accounts, so you would file by June 30, 2012 to reflect your 2011 accounts.jointly) at any time during the year, then you need to file form 8938.
If you are a taxpayer living abroad, the thresholds are $200,000 on the last day of the year (or $300,000 at any time during the year) for single filers. For joint filers, it’s $400,000 on the last day of the year, or $600,000 at any time.
Similar to the FBAR, ‘foreign financial assets’ covers a lot of ground; there’s a broad spectrum of assets that needs to be reported, so make sure you consult with your tax advisor.
FBAR vs. FATCA examples
1) You live in Panama. You are single. You have one Panamanian bank account that has consistently had roughly $100,000 in it all year, plus or minus a few thousand. You must file the FBAR by June 30th, but NOT form 8938.
2) You live in the United States. You are single. You have a Panamanian bank account that has consistently had roughly $100,000 in it all year, plus or minus a few thousand. You must file the FBAR by June 30th, AND form 8938 by April 17th.
The important thing to remember is that FATCA does not replace the FBAR. Depending on the threshold, it may be in addition to the FBAR.
On the form, you have to report the maximum amount in each account during the year. For foreign currencies, convert to US dollars using the Treasury Department’s figures at http://www.fms.treas.gov/intn.html#rates
offshore account
The report Report of Foreign Bank and Financial Accounts is due to the Treasury Department each year by June 30th if you held a financial interest or signature authority over a foreign account. This includes bank accounts, brokerage accounts, insurance policies with cash value (like whole life), annuities, mutual funds, etc. It also includes corporate accounts that you have signature authority over, or accounts for other individuals that you control.
According to a FinCEN ruling last year, an account with Gold Money or another such organization that is in the business of purchasing and storing gold (especially unallocated) should also be reported.
You are exempt from filing an FBAR if the aggregate value of all accounts was less than $10,000 for the entire year. If at any point during the year the aggregate amount exceeded $10,000, even for a day, the FBAR must be filed. To be clear, the FBAR is filed for the previous year’s accounts, so you would file by June 30, 2012 to reflect your 2011 accounts.jointly) at any time during the year, then you need to file form 8938.
If you are a taxpayer living abroad, the thresholds are $200,000 on the last day of the year (or $300,000 at any time during the year) for single filers. For joint filers, it’s $400,000 on the last day of the year, or $600,000 at any time.
Similar to the FBAR, ‘foreign financial assets’ covers a lot of ground; there’s a broad spectrum of assets that needs to be reported, so make sure you consult with your tax advisor.
FBAR vs. FATCA examples
1) You live in Panama. You are single. You have one Panamanian bank account that has consistently had roughly $100,000 in it all year, plus or minus a few thousand. You must file the FBAR by June 30th, but NOT form 8938.
2) You live in the United States. You are single. You have a Panamanian bank account that has consistently had roughly $100,000 in it all year, plus or minus a few thousand. You must file the FBAR by June 30th, AND form 8938 by April 17th.
The important thing to remember is that FATCA does not replace the FBAR. Depending on the threshold, it may be in addition to the FBAR.
On the form, you have to report the maximum amount in each account during the year. For foreign currencies, convert to US dollars using the Treasury Department’s figures at http://www.fms.treas.gov/intn.html#rates
offshore account