# Basic FBAR questions



## Shelster (Apr 3, 2014)

I just posted a question about taxes, so now it's on to FBARs - I'll repeat myself here with background info: I'm a US citizen who moved to UK in 2005 to marry my British husband. We have lived in the UK since then. I filed my taxes in 2006 for the 2005 tax year which was the last year I worked in the US but haven't filed since (for stupid reasons, namely ignorance). I have never filed an FBAR (more ignorance).

I have recently hired an accountant to help with filing the tax returns. I'd like to do the FBARs myself rather than ask the accountant, namely to save money. I think it's quite straightforward, as my only UK interests are 1. joint savings account held with my husband; 2. small savings account in my name and 3. since 2009, v. small pension plan to which I stopped contributing in 2011 (it's about £1,300). 

I understand that the filing threshold is $10K (or other currency equivalent) in the aggregate. I think I will just barely squeak above that in some years since 2005. 

I've read a bit on the info about delinquent FBAR filings. Am I correct in thinking that it makes sense for me to get all my tax returns in order first, so that I know what category I fall into (e.g., low risk b/c I owe less than $1,500 on any return)? I'd really like to get the FBARs done ASAP, but am feeling like maybe I should wait until the taxes are filed to avoid red-flagging the late tax returns!

Many thanks.


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## Bevdeforges (Nov 16, 2007)

Unless you have huge foreign accounts and/or "suspicious" looking items on your tax returns, it's doubtful that they'll ever even get around to comparing your FBAR filings to your income tax filings - certainly not for prior years.

File the FBAR for 2013 (which is due by the end of June) and see how it goes. Then, when you've got your tax returns put together, see what makes sense to do, and what helps you sleep at night.

It's only starting this year (2014) that the IRS is going to start receiving information from the non-US banks to run against their data base of returns and FBARs filed, so I wouldn't get too worried about back filing those FBARs if you're just barely over the $10,000 figure.
Cheers,
Bev


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## BBCWatcher (Dec 28, 2012)

FYI, that pension fund could need some careful handling on your tax returns since foreign retirement savings are often "strange" from a U.S. tax point of view. You might want to ask for more details over in your tax thread.


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## Shelster (Apr 3, 2014)

Bevdeforges said:


> Unless you have huge foreign accounts and/or "suspicious" looking items on your tax returns, it's doubtful that they'll ever even get around to comparing your FBAR filings to your income tax filings - certainly not for prior years.
> 
> File the FBAR for 2013 (which is due by the end of June) and see how it goes. Then, when you've got your tax returns put together, see what makes sense to do, and what helps you sleep at night.
> 
> ...


Thanks again, Bev. I've only got very small savings and earnings so I'd be stunned if they redflagged me, but like you say, it's about sleeping at night! Much appreciate the sound advice.


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## Shelster (Apr 3, 2014)

BBCWatcher said:


> FYI, that pension fund could need some careful handling on your tax returns since foreign retirement savings are often "strange" from a U.S. tax point of view. You might want to ask for more details over in your tax thread.


Thanks, BBCWatcher. I'm going to have an accountant handle the tax side of things. Will post if any issues come up!


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## DavidMcKeegan (Aug 27, 2012)

I realize I always tend to lean towards a conservative approach, but I would certainly file the last six years of FBAR just to be safe. I have not seen any penalties come about for filing late FBAR's (to those who legitimately had no idea the FBAR existed), yet the penalties for getting "caught" not reporting are pretty steep.

File the six years, and then sleep at night because you did everything you should/could have.

BBCWatcher is also right about the pension...I would look into it further as it could pose some unique filing requirements.


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## BBCWatcher (Dec 28, 2012)

This is a particularly good year to get FBARs done. There's more data sharing starting this year (2014).


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## Shelster (Apr 3, 2014)

I agree with you both - am glad that I've become aware of the potential nightmare of FBARs now, rather than a few years down the line!


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