FBAR Reporting

FBAR Reporting

• "Signature authority"... needs to be reported on electronic-FBAR even if another entity holds the assets. e.g. Fred & Wilma own an LLC 50%/50%. LLC has foreign account over $10K. Because Fred & Wilma have signature authority over account (even though neither one of their ownership's exceeds 50%) they need to file an FBAR disclosing signature authority. And of course, the LLC needs to file its own FBAR as owner of a foreign account over $10K.
• Beneficiaries of a Defined Benefit (DB) plan (pension plan) do not need to file FBAR.
• Beneficiaries of a Defined Contribution (DC) plan DO need to file FBAR.
• It doesn't matter how you acquire the funds (inheritance), if its a foreign account, needs FBAR reporting.
• Gold coins in a foreign safety deposit box do NOT need FBAR reporting. these are considered personal assets and not a foreign account.
• FBAR is not a report of income or assets, simply a report of foreign accounts.
• BitCoin (virtual currency), is reportable on FBAR -- stay tuned...
• Declare foreign banking activity by filing a Foreign Bank Account Report (FBAR), if necessary. US persons (citizens, residents and entities created in the US) must file the FBAR if, at any time during the year, they had a financial interest or signature authority over a foreign financial account with a value of more than $10,000. A wallet with an exchange located in a foreign country, such as Mt. Gox, (Mt. Gox was a BitCoin exchange based in Tokyo, Japan) would cause the taxpayer to be subject to the FBAR rules. Note that the reporting threshold applies to your account balance on every day of the year, not the average balance or balance on just the last day. The FBAR threshold is also crossed when multiple foreign financial accounts have an aggregate value of greater than $10,000.
• You do not have to have a US SSN to file an FBAR. alternatively, you can use Block 4 for Passport # or Gov't issue ID with explanation... (use Block 3 for US SSN or Tax ID).
• Canadian RSP accounts (IRAs) and Mexican AFORE accounts (IRAs) are FBAR reportable.
• If you don't have all necessary foreign account info by June 30th, file the FBAR with what you have, and come back later and amend once info is available. No extensions, June 30th deadline.
• FinCEN is responsible for FBAR under Title 31USC, BSA. IRS examines for FBAR compliance.
• BSA laws say; any foreign account over $10K at anytime during the year requires FBAR. FBAR attempts to track illicit foreign accounts used for money laundering, terrorism...

Question: When a preparer is willing to help clients with filing their FBAR (FinCEN Report 114) through FinCEN's BSA E-Filing System, can the preparer fill out the information online for the taxpayer?

Answer: Yes, provided the preparer registers as an institution on the BSA website. When you go to File the Report of Foreign Bank and Financial Accounts (FBAR) as an Individual, there is a note that says, “A non-individual FBAR filer, such as an attorney, CPA, or an enrolled agent filing the FBAR on behalf of a client must register to Become a BSA E-Filer and file as an institution rather than an individual.” You must Become a BSA e-Filer to register and submit forms as a business.

Furthermore, a taxpayer will use Form 114a, Record of Authorization to Electronically File FBARs, to give the preparer authority to file the FBAR on behalf of the taxpayer.