Hot answers tagged

9

Interest means that the money on the accounts belongs to you, regardless of who's name is the account titled to. For example, if you give money to someone (non-US person, say, trying to avoid FBAR requirements) and that person puts it in his account but will give you money whenever you ask for it - you have interest in that account. This is in order for ...


6

It is not a loophole. Things is not money. FBAR is only about bank accounts, so if you have $9000 on your bank account it is not the same as having $9000 worth of stuff hoarded in your apartment. FBAR should be filed if at any day of the year the total of all the foreign bank account balances is over $10K. It has nothing to do with non-monetary possessions (...


5

The IRS allows filers to attach a statement explaining the reason for late filing. I have had clients do this in the past, and there has never been an issue (not that that guarantees anything, but is still good to know). Generally, the IRS is much more lenient when a taxpayer voluntarily complies with a filing requirement, even if it's late, than if they ...


4

not having ever filed anything with IRS Up to $100,000 (one hundred thousand) penalty per account per year that you willfully neglected to report. If there's also tax evasion - it can jump up to much more + jail time. withdrawing $33,000 in one lump sum Not sure how RRSP are taxed. May very well be taxed as PFIC, since they're supposed to be taxed as ...


4

The deadline for each year is June 30th of the next year. So if you became US resident in 2014 - the first FBAR has to be filed by June 30th, 2015. As with tax returns, FBAR is filed for the previous calendar year.


4

Deliberately breaking transactions into smaller units to avoid reporting requirements is called structuring and may attract the attention of the IRS and/or law enforcement agencies. I'm not sure what the specific laws are on structuring with respect to FBAR reporting requirements and/or electronic transfers (as opposed to cash transactions). However, there'...


3

From the IRS guidelines here: https://www.irs.gov/irm/part4/irm_04-026-016.html If a person has one or more but fewer than 25 reportable accounts and is unable to determine whether the maximum value of these accounts exceeded $10,000 at any time during the calendar year, the FBAR instructions state that the person is to complete the applicable parts ...


3

Yes, I'd say you do. This is similar to reporting a brokerage account. Also, don't forget the requirements for form 8938.


3

More complications... When the provisions of FATCA go into effect for financial institutes in Canada (July, 2014?), the institution holding your RRSP and LIRA may, if they know or suspect that you are subject to US taxation, be required to supply the IRS with FBAR-type information on you and your accounts annually.


3

If you're participating in OVDP, you surely have a tax attorney who's representing you. Why don't you ask your attorney? If you're participating in OVDP without any legal counsel, then your problem is really much bigger than what you ask about. OVDP is not something to do on your own. Get a proper legal advice from an attorney/EA/CPA who's specializing on ...


3

You do not need to report property, but you need to report financial assets. Your bank accounts are reported on FBAR and form 8938, your partnership is reported on form 8865 (you mentioned planning to buy with your father - that is a partnership). Additional reporting may be required depending on the kinds of assets, formations or income you'll be having. If ...


3

"No financial interest" means that you have signing authority over the account, but you don't own the money in it and aren't allowed to withdraw from it at will. One example would be a business account owned by a company where you're employed as a purchasing manager, and you need to sign checks drawn on that account to pay invoices. FBAR doesn't care about ...


3

Yes. You can file an amended tax return (form 1040X) and include the additional files. The Internal Revenue Service (IRS) knows the tax code is complex, and that people make mistakes. It will not be viewed negatively on you. It would be worst if you found out you made a mistake and did not attempt to correct it.


2

FBAR is enforced by the IRS, and OVDP is administered by the IRS, and as part of the program your tax returns will be examined. So I'd personally say that the answer is yes - treat it as part of the tax preparation fees. If you want to deduct tax preparation fees, you can do it as part of your itemized deductions, subject to the 2% AGI threshold, so yes - ...


2

If you were a resident for tax purposes before getting the green card (being on H1 or L1, for example, makes you "US Person" for tax purposes) - you should have been reporting then too. Definition of "US Person" for the purposes of FBAR comes from 26 USC § 7701 (i.e.: the definitions' section of the US tax code). I'd say file it if in doubt. The penalties ...


2

It hasn't changed, to the best of my knowledge. You can use the same form for each of the years. Make sure to write the correct year on line 1. Be very careful at what you're doing though. You can get hit with a lot of fines and penalties for late filing. Get a qualified tax professional (EA/CPA/Attorney) to help you with this, and get you into OVDI, if ...


2

Lets look at possible use cases: If you ever converted your cryptocurrency to cash on a foreign exchange, then **YES** you had to report. That means if you ever daytraded and the US dollar (or other fiat) amount was $10,000 or greater when you went out of crypto, then you need to report. Because the regulations stipulate you need to report over $10,000 at ...


2

You can upload amended report for these years. You can write down the explanation just as you said - you thought the accounts were already closed, and just discovered that they were not. I assume now they are, right?


2

This FBAR document suggests: which eventually leads to here which has the historical rates here.


2

You report the interest actually received during the year, on your Schedule B. On FBAR you report the highest balance of the account during the year. It is not necessarily the balance on the last day of the year (or the first). You'll need to go through your statements and find the day with the highest balance, in US dollars. The FBAR requirement is a bit ...


2

This is partly a dupe of What is the deadline to file FBAR for a foreigner recently arrived in the US? but I think it's different enough to merit an answer. If you became (or were) a US resident for tax purposes last year and had during the year a 'financial interest in' (i.e. own or benefit from) more than US$10k in 'financial accounts' in a country or ...


2

You need to report your accounts, not other persons. However, if you have a joint account with another person - it is your account, jointly. So the joint account has to be reported, your girlfriend's personal accounts - not (unless the money there is yours or you have signature authority, of course). For a joint account - you need to report who are the joint ...


2

If you move money - you don't need to pay any taxes. If the money was not there before and magically appeared at some point and now you want to move it - you'll have to explain a thing or two to the IRS and FinCEN. Generally, if you're a green card holder - you pay taxes on your worldwide income. So if you have a foreign account that earns interest - that ...


2

"Principal Joint Owner" means the principal person with whom you share the account, not the owner who has the "most control" over the account. If the account has 2 joint owners (including yourself), put the identifying information for the other joint owner in items 25-33. If there are 3 joint owners, pick the one (out of the other 2) who has the most control....


2

Looking at https://www.fincen.gov/filing-spouse it seems there are certain conditions in which only one filer needs to file the FBAR, namely The spouse of an individual who files an FBAR is not required to file a separate FBAR if the following conditions are met: (1) all the financial accounts that the non-filing spouse is required to report ...


1

Do you have signature authority or interest in the account? Then yes. Interest in the account means that you wire $25K to your dad, but the money still belongs to you (I.e.: if you ask for it your dad will give it back to you).


1

The answer above is not correct. I just called the IRS FBAR and Title 31 Helpline (contact information). I was told it is very simple. Either you know the maximum value, or you don't. If you don't know it then check the box that says maximum value unknown. There is no negative consequence associated with that box. If you do know then put the value in. ...


1

No, it is not, and "bank doesn't keep statements" is not an excuse. It is your responsibility to keep the statements, not the bank's. This check box is for the cases when you know there's an account in your name, but you don't know what the value is and cannot reasonably find out. For example, you may have signature authority on a company account, but you ...


1

Most if not all brokers [Including those from large Govt or Private Banks] accept NRI trading. You would need to have an NRI bank account. An PINS-Demat Account and an NRI Brokerage account. Almost all brokers offer online platform and this would be more preferred rather than offline. It would be easier if you have all the three accounts from same ...


1

so I believe it should be under "No Financial Interest Account Information." section ? Why? It's your account in your name. From legal perspective it is your personal account and you have financial interest in it.


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