FBAR

Who Must File an FBAR?
A U.S. person, including a citizen, resident, corporation, partnership, limited liability company, trust and estate, must file an FBAR to report (Form 114, Report of Foreign Bank and Financial Accounts if:
1. You have 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.

Do I have to report my financial account, even it does not produce any taxable income?
Yes, you are required to declare all your accounts if you need to file FBAR form. Please refer to the previous question for more details.

What is the last date of filing FBAR form?
The FBAR is an annual report, due April 15 following the calendar year reported. You’re
allowed an automatic extension to October 15 if you fail to meet the FBAR annual due date of April 15.

Does WorkMyTaxes help in filing of the FBAR form?
Yes we can help you file the FBAR form. If you are an existing client the fee starts at $40. If you are not an existing client of WorkMyTaxes the fees starts at $100.

Foreign Assets Reporting:
What are the specified foreign financial assets that I need to report on Form 8938?
If you are required to file Form 8938, you must report your financial accounts maintained by a foreign financial institution. Examples of financial accounts include:
– Savings, deposit, checking, and brokerage accounts held with a bank or broker-dealer.
- Stock or securities issued by a foreign corporation;
- A note, bond or debenture issued by a foreign person;
- An interest rate swap, currency swap, basis swap, interest rate cap, interest rate floor, commodity swap, equity swap, equity index swap, credit default swap or similar agreement with a foreign counterparty;
- An option or other derivative instrument with respect to any of these examples or with respect to any currency or commodity that is entered into with a foreign counterparty or issuer;
- A partnership interest in a foreign partnership;
- An interest in a foreign retirement plan or deferred compensation plan;
- An interest in a foreign estate;
- Any interest in a foreign-issued insurance contract or annuity with a cash-surrender value.
The examples listed above do not comprise an exclusive list of assets required to be reported.

How do I file this information?
The form 8938 needs to be filed with your Income tax returns.

How do I provide the foreign bank and financial accounts details? Our website has a friendly excel based form in the download section that can guide you to submit the information to us.

Do I have to file both Form 8938 and Form 114, Report of foreign bank and financial accounts (FBAR)?The filing of Form 8938 does not relieve you of the requirement to file the FBAR if you are otherwise required to do so, and vice-versa. Depending on your situation, you may be required to file Form 8938 or the FBAR or both forms, and certain foreign accounts may be required to be reported on both forms.