FBAR is the IRS reporting requirement of U.S Citizens and residents who own or have signature authority over financial accounts outside the United States. There is a reporting threshold in aggregate of foreign accounts during any day in the calendar year. Failure to report carries significant penalties and interest

Threshold

• The threshold is cumulative across all foreign financial accounts

• Not what the account value was at the end of the year but the maximum value during the year

• The amounts are converted based on the IRS official exchange rates

What to disclose?

• Bank accounts

• Mutual funds

• Brokerage accounts

• Cash value of insurance policies

• Commodities, options, futures contract

What is foreign?

• The physical location is considered foreign by the Government. Not the nationality

  • Eg: Citibank in India is a foreign account, State Bank of India in the US is not

Children Matter

• Children under 18 are subject to FBAR compliance

• Includes accounts held by parent on behalf of the children

We help our clients with the following tax filings