|Posted on September 24, 2011 at 5:35 PM|
It’s remarkable how confused folks can be about something they don’t want to do, isn’t it? Let’s take the FBAR form, for example. While I may have my own reasons for suggesting that many Americans overseas should qualify for an exception from the reporting requirement - which could depend on several variables including the amount of time they spend in the U.S., their tax home nation, etcetera, this does not in any way affect an American’s responsibility to comply with the current law. Therefore, I will post here my reply to an individual client, of today’s date:
If you have had more than the equivalent of 10,000 USD in any set of combined accounts outside the U.S. during any single year since 2003, you should file the latest version (at this writing, the March, 2011 version) of the FBAR form for that year.
To determine whether you should file for that year, you can add up your highest total in all accounts in a foreign country or countries for that year, and then view the conversion rates approved by the U.S. Treasury Department, which can be found at this page.
Conversion rates for years prior to 2007 can be found by using the search function at this page, for example:
I do not file this form for other persons because it does not require any sort of special knowledge to complete it. In contrast, the IRS personal income tax forms I complete for individuals require quite a bit of special knowledge to put together correctly. Since the FBAR’s TDF form is asking for direct information, and since the instructions are included in the form, it is up to persons who qualify to look it up, read it, fill it out, include an explanation, and then send it in.
I hope this information helps you determine whether you have an obligation to file the form, and wish you all the best.
Frequently asked questions are noted at the IRS website, where they state the answers will be kept updated. Here is the link to the FAQs.