FBAR and FACTA for Green Card winners this year

[Eucn 2]

Hi All class of DV2014,

I tried to post something in the old forum a week ago, but I think it never got through due to the forum instability. I dont know how many of you are aware of the FACTA requirements for reporting on Foreign Bank Accounts. These rules have been significantly tightened the last couple of years and carry stiff penalties for non compliance. Basically as residents, citizens and green card holders we are required to report all overseas bank accounts if the accumulated monies are more than 10K...the fine for not doing so and being found out is 10K per case and possibility of confiscation of up to 50% of content.

I know that many people have idle bank accounts here and there that they are not using and did not bother to close, but in these cases I think it would be a good idea to do a little bank house keeping and close down unnecessary bank accounts before you get the green card. It is unclear whether all company retirement schemes that you may or may not have been participating in should also be reported, but one big surprise is that you also have to report any account that you have signatory rights to....for example if you work for an international company and can sign off payments from company accounts...even this may not be your personal money....it is still required to report...unless its an American Company and this company already bulk reports all its signatories to the IRS.

I think for some this may not be so relevant,,,,but since many of us are self petitioners...I assume that many of us have more than 10K and that most of us are going to keep some money in our home countries etc. Thus be careful not to miss the FACTA required reporting during the month of June. I am not sure if there is a grace period for new green card holders, but better check with an accountant...or at least I will once hopefully it is my time.

[SusieQQQ 11,585]

This is a good reminder. I haven't done my FBAR form yet but I'm told it's pretty simple.

Maybe also just a reminder to GC holders that you are liable to file for taxes with the IRS the year you get your green card, even if if you are only in the US for one day of that year.

[Buckyball 22]

This is a good reminder. I haven't done my FBAR form yet but I'm told it's pretty simple.

Maybe also just a reminder to GC holders that you are liable to file for taxes with the IRS the year you get your green card, even if if you are only in the US for one day of that year.

It's a pain in the ### if you have a lot of accounts.

[SusieQQQ 11,585]

but one big surprise is that you also have to report any account that you have signatory rights to....for example if you work for an international company and can sign off payments from company accounts...even this may not be your personal money....it is still required to report...unless its an American Company and this company already bulk reports all its signatories to the IRS.

.

I've just been reading the FBAR stuff on http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Report-of-Foreign-Bank-and-Financial-Accounts-FBAR and it seems the above extract from the OP is incorrect. Under the exceptions it includes: Certain individuals with signature authority over, but no financial interest in, a foreign financial account.

It doesn't apply to me so I am not investigating further but maybe people with such signatory powers should contact a tax consultant.

[Eucn 2]

I've just been reading the FBAR stuff on http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Report-of-Foreign-Bank-and-Financial-Accounts-FBAR and it seems the above extract from the OP is incorrect. Under the exceptions it includes: Certain individuals with signature authority over, but no financial interest in, a foreign financial account.

It doesn't apply to me so I am not investigating further but maybe people with such signatory powers should contact a tax consultant.

One should not report if you only have the power to direct the account but if one has disposition power it's very clear that one should report. The exceptions you refer to is no longer valid. Below is from Deloitte.

individuals and entities who have a financial interest in or signature or other authority over a foreign financial account are required to file an annual TD F 90-22.1, Report of Foreign Bank and Financial Accounts known as an FBAR with the Treasury Department. Final reporting rules effective as of March 28, 2011, clarify that individuals with signature or other authority over foreign financial accounts must file FBARs. Some individuals who had not previously filed an FBAR may now need to file FBARs for 2012 and previous years. Returns for calendar year 2012, unless covered under Treasury Financial Crimes Enforcement Network (FinCEN), Notice 2012-2 discussed below, must be received by June 30, 2013.

The final rules clarified that there is not a broad exception to the reporting requirements that U.S. persons holding signature authority over but no financial interest in foreign accounts had relied upon in the past. If subject to these rules, these individuals, including officers and employees of multinationals, will need to disclose information about foreign accounts to the Treasury.

Although many entities have been filing FBARs for years reporting their financial interest in foreign financial accounts, some individuals may be unaware of their filing requirements. Entities, employees, and individuals should review their reporting requirements to ensure that they meet

the reporting deadline and avoid the risk of significant criminal and civil penalties for noncompliance.

The final rules require any U.S. person, individual, or entity that has a financial interest in or signature or other authority over a foreign financial account

to file an FBAR if the aggregate value of all accounts exceeds $10,000 at

any time during the calendar year. The forms must be received (not just postmarked) at the Treasury Departments Detroit Center by June 30, 2013. Importantly, the government will not grant additional extensions to file the FBAR, and failure to file may result in significant criminal and civil penalties.

Signature authority filing requirements a source of concern

The final rules largely adopted the prior FBAR reporting rules and provided several clarifications. Clarification in the supplementary information to the final rules regarding the meaning of signature or other authority for a financial account has caused concern for some employees and officers. With limited exception, the final rules require U.S. persons who are employees and officers with signature authority over but no financial interest in foreign financial accounts to file an FBAR for all such accounts, even if the corporate account owner files an FBAR that includes such accounts.

Under all circumstances. I think that best thing is to contact a tax consultant as you mentioned.

Any person with signatory power over a foreign bank account whose balance exceeds US $10,000 at any time during the year must make a Report of Foreign Bank and Financial Accounts (FBAR) to the Department of Treasury.

[SusieQQQ 11,585]

Just to say I am surprised you say the exception is "no longer" valid, as that is what is currently (i.e. today) listed on the IRS website. Your extract above is for calendar 2012 reportable June 2013 so a year old, so definitely worth checking that it is not in fact that one that is out of date?

[Eucn 2]

Just to say I am surprised you say the exception is "no longer" valid, as that is what is currently (i.e. today) listed on the IRS website. Your extract above is for calendar 2012 reportable June 2013 so a year old, so definitely worth checking that it is not in fact that one that is out of date?

I checked with Amcham in the city I live. It is and it is a huge hazzle. But under all circumstances one should get professional advice if one in anyway is involved with bank accounts for legal entities overseas so far that these accounts are also overseas. The point is to fight tax fraud so it makes sense to cast the net wide otherwise a rich person could just incorporate overseas and control investments through such an entity.