Blog‎ > ‎

FBAR, Who Must File it?

posted Oct 12, 2013, 10:52 PM by Zaher Fallahi

United States persons are required to file an FBAR if:

(a)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

(b)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 U.S. citizens; U.S. 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.

Exceptions to the Reporting Requirement:

Exceptions to the FBAR reporting requirements can be found in the FBAR instructions. There are filing exceptions for the following United States persons or foreign financial accounts:

Certain foreign financial accounts jointly owned by spouses;

United States persons included in a consolidated FBAR;

Correspondent/nostro accounts;

Foreign financial accounts owned by a governmental entity;

Foreign financial accounts owned by an international financial institution;

IRA owners and beneficiaries;

Participants in and beneficiaries of tax-qualified retirement plans;

Certain individuals with signature authority over but no financial interest in a foreign financial account;

Trust beneficiaries (but only if a U.S. person reports the account on an FBAR filed on behalf of the trust); and

Foreign financial accounts maintained on a United States military banking facility.

Review the FBAR instructions for more information on the reporting requirement and on the exceptions to the reporting requirement.

 

If you need assistance with your accounting, payroll processing, tax planning, preparation and the IRS representation including disclosure of your undeclared foreign bank accounts, please contact the Los Angeles & Orange County CPA, Zaher Fallahi, at (310) 719-1040 (Los Angeles) or (714) 546-4272 (Orange County), or e-mail to taxattorney@zfcpa.com.

Comments