With the ongoing US tax crackdown on US expats, comes the demand to file FBARS. An FBAR or FinCen is used to report foreign bank and financial accounts. Within the FBAR you must report all foreign bank, securities and financial instruments.
Who needs to file an FBAR?
Both US citizens living abroad and in US can be required to file an FBAR. Those who are owners, nominees or in the control of the distribution of foreign account funds that have a total worth of $10,000 at any point during the tax year must file and FBAR.
The IRS’s classification for a ‘foreign accounts’ that fall into the FBAR classification of accounts from outside of the 50 states, D.C., the U.S. possessions and tribal territory and includes bank accounts, securities accounts and foreign retirement arrangements.
Other Information about filing an FBAR
Alongside an FBAR, a personal tax return should be filed. The Schedule B Part III and a Form 8938 may also have to be filed. The FBARs due date falls on April 15th 2019, but for citizens living abroad can be extended by June 15th.