Do you live abroad? Do you own an asset or bank or investment account that had an accumulated value or total exceeding $10,000 at any time in 2015 (or any year)? If so, you are required to file a Report of Foreign Bank and Financial Reports (FBAR). Thus, if an asset was valued at, or an account totaled, $10,001 for just one day, an FBAR is due and must be filed. The Treasury Department’s Financial Crimes Enforcement Network (FinCen) received a record high 1,163,229 FBARs in 2015. What is surprising is that FinCen data shows that FBAR filings have grown an average of 17 percent per year during the last five years. Over 90,000 taxpayers filed FBARs in 2015.
Any U.S.person (resident, citizen, entity, taxpayer) who held signatory authority or other control over foreign bank accounts, investment accounts or assets with a total value exceeding $10,000 at any time in the particular tax year is required to file a FBAR. U.S. citizens living abroad face potentially severe penalties for failing to fully disclose foreign assets and income by amending tax returns and filing FBARs for previous years.
The number of filings of Form 8938, Statement of Specified Foreign Financial Assets (filed with a Form 1040 usually) have generally remained consistent in recent years at approximately 300,000 filings for 2014 and 2013, and up from about 200,000 for tax year 2011, the first year taxpayers were required to file such forms.
It’s a head-scratcher that a million Americans are estimated to be living abroad and yet only 90,000 taxpayers filed FBARs in 2015. It’s a bit shocking the number of folks living in places like Tokyo, Nairobi, London and Brussels who don’t have a clue what an FBAR is or what FATCA requires.
If you are a US individual or business required to file FBARs and meet other FATCA requirements, call THE TAX EXPERTS at the Thorgood Law Firm www.thorgoodlaw.com. For a FREE consultation call 212-490-0704.
