# Calculating FATCA reporting threshhold



## kalohi (May 6, 2012)

I am an American living and working in Spain, and I have been faithfully filing US income tax returns and FBAR reports for years. I've never had to file a FATCA report, but I'm not sure if I'm required to this year. As I understand it, you must file if you have more than $200,000 in foreign financial assets on Dec 31 (not my case), or if you have more than $300,000 in foreign financial assets at any time during the year.

This is what I'm not clear about. I bought and sold a house last year and so over the course of a month a lot of money went in and out of several bank accounts. Because of that, the aggregate of the maximum account values for last year comes to more than $300,000. But on any one given day in 2017 the total amount in all my accounts never passed $300,000. 

So do I have to file a FATCA report?


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## Bevdeforges (Nov 16, 2007)

This is likely to launch a "discussion" here, but I'd say that if it comes down to a matter of definition of how to calculate the maximum balances (like you have described) you're probably safe in assuming that you can skip filing the FATCA form, given that your total in all your accounts never exceeded the limit at the same time. (The rules for filing FBAR are different from how they figure these things for FATCA.)

But I'm sure there are vast differences of opinion on this.
Cheers,
Bev


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## kalohi (May 6, 2012)

So the answer isn't cut and dry, like it is with the FBAR. Not what I wanted to hear. I'm still on the fence about this.

At any rate, thanks so much for your input.


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## Bevdeforges (Nov 16, 2007)

Frankly, there are no "cut and dried" answers to anything concerning taxation of "overseas Americans." OTOH, the enforcement will and ability of the IRS for those of us overseas leaves lots to be desired. I've found that, unless you are Boris Johnson and selling your house for millions of dollars so that the sale makes it into the newspapers, as long as you make a good faith stab at interpreting the rules (as outlined in the various forms and their instructions), chances are it'll fly.

Unless there is an "obvious" incongruity on your tax forms as submitted, there is little chance that the IRS will do much more than register the filing and get on with Life. At the moment, the only bank information they get from foreign banks is the existence of the accounts and the year end balance. It's even doubtful that they compare your returns to your FBAR filing unless there is something "strange" noted on your returns. 

So, take a position (like, your total accumulated balance never reached the threshold on a given day) and stick to it. IF (and it's a big if) they have a question about it, they'll be in touch - but don't hold your breath. 
Cheers,
Bev


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## baldilocks (Mar 7, 2010)

and don't bother to ask the IRS, because that will draw their attention to you (and you know how picky they can be) and they might catch you out over something quite minor or, even irrelevant.


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## alepuppy (Aug 18, 2015)

i miss something... I learned about the obligations to file the tax return and the FBAR info what is thi s FACTA form????


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## Moulard (Feb 3, 2017)

Form 8938, Statement of Specified Foreign Financial Assets is the IRS form
FINCEN Form 114 is the Financial Crimes Enforcement Network form aka FBAR


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## Bevdeforges (Nov 16, 2007)

alepuppy said:


> i miss something... I learned about the obligations to file the tax return and the FBAR info what is thi s FACTA form????


The so-called FATCA form(s) usually only apply to those taxpayers who have at least $50,000 in reportable foreign financial assets (US residents) or at least $200,000 in reportable foreign financial assets (those living outside the country).
Cheers, 
Bev


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