Internal Revenue Service – Expat Information – FBAR Form TD F 90-22.1

The IRS requires that the FBAR form be filed annually:

Who must file an FBAR:

United States persons are required to file an FBAR if:

  1. 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
  2. The aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year to be reported.

See the full IRS guideline at: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Report-of-Foreign-Bank-and-Financial-Accounts-(FBAR)

If you have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account, the Bank Secrecy Act may require you to report the account yearly to the Internal Revenue Service by filing Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR).

TD F 90-22.1 can be found at:  http://www.irs.gov/pub/irs-pdf/f90221.pdf

The FBAR is required because foreign financial institutions may not be subject to the same reporting requirements as domestic financial institutions. The FBAR is a tool to help the United States government identify persons who may be using foreign financial accounts to circumvent United States law. Investigators use FBARs to help identify or trace funds used for illicit purposes or to identify unreported income maintained or generated abroad.

The filing date is June 30 of each year. Add this one to your calendars.

10 thoughts on “Internal Revenue Service – Expat Information – FBAR Form TD F 90-22.1

  1. Thank you. I’m guessing having a CD in Ecuador counts as qualifier to file this form?

    John

    Sent from my iPad

    • Hi John, Yes, if any or all accounts outside of the US hit $10k you need to complete the form. Can’t get away from the paperwork no matter how hard we try. Nancy

  2. Just a reminder: FBAR Form TD F 90-22.1 is NOT to be filed with your tax return. It is to mailed separately to the Treasury Department address (in Detroit) indicated on the form.

    • TerryE, Great point..you are correct it is not part of your tax return and is filed in June not April. Nancy

    • Hi Deb, I hope this is the last of forms to be filed for this year…who knows they may come up with a new one. ja ja Nancy

  3. I have only one foreign account and at no time did its value hit or exceed $10,000, however the aggregate of my deposits (and withdrawals) would have exceeded $10,000. My interpretation is I do not have the FBAR. Is my interpretation correct?

    • Hi David, I am in no way an expert on any of these forms for the IRS or Social Security. With that said, the way I have interpreted it was “if you had a balance in one or more foreign account at any time (a specific date) during the year 2012 where it exceeded $10,000 (total of all accounts combined) you are required to complete this form”…I keep a worksheet in my computer and post each transaction to that sheet, when I am putting the paperwork together for the Fbar I list the high balance per month for each account and use the higest amount during the 12 month period as the “Maximum value of account during calendar year reported”. If at any time during the year my “combined account balances” exceed $10,000 I am required to complete the Fbar. We purchased a house this year, not a great deal of money but in the one account alone we had more than $10,000 when we wired money into that account to cover the sale price and closing costs it was there for just a matter of days and was wired to our attorney for the closing. But we had over $10,000 in that account… So I had to show each and every account, if they were individual accounts, joint accounts, signature authority or if we filed a consolidated report. We had 2 accounts in Panama that we did not close until 2012 and the new accounts that we opened here. I hope that helps clear this up…we do not have US bank accounts any longer as our US bank went out of business while we were living in Panama and because we do not have a US address the banks we spoke with would not allow us to open an account. I completed our Fbar yesterday and am having a friend take it back to the US when they leave on the 24th, they will mail it for me in that way making the June 30th deadline…Nancy

  4. Thanks for the reply. I have never filed the Fbar in the past even though I may have a day here and there a number of years ago where the aggregate balances exceeded $10K. I remember one of the Schedules (B?) in the past where it asked if you had financial interest in a foreign account and if it exceeded $10K. I would check the yes block and write a note in the block saying what country the bank was in and that I was military stationed overseas and the account was for paying rent and routine living expenses. Luckily they never hit me for not actually submitting the Fbar, though maybe I never actually hit the $10k threshold. So going forward I won’t submit the Fbar unless I’m pretty certain my balance (only one account) is close to our exceeds $10k. Thanks again.

    • Hi David, Joe just let me know that because we live outside of the US our deadline for this form is June 30th but it can be submitted anytime after the end of the year. I have waited until June but next year will submit much earlier because I have someone going back to the states drop it in the mail for us. thanks for reading, be well, Nancy

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