# FBAR questions



## solost1992 (Apr 2, 2014)

I have two questions that I couldn't answer for a friend of mine.

1. Suppose a joint account holder has 500.000 euros in an account and the following year it's 20.000 euros. How is the IRS going to react to that? I assume one of the joint owners is going to transfer the sum into his own account (NRA). I told him it would not be a problem, but I'm not sure.

2. Can the filed FBARs be saved in PDF format?

Thanks


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## Bevdeforges (Nov 16, 2007)

1. They'll file the FBAR away however they normally do and that'll be the end of it. I really think they only use these as reference documents and most likely they drag them out only if something on the person's tax return "looks fishy" and needs looking into. Plus, the way they ask for the "maximum balance" only means that in the year that someone sells a house, it's entirely possible they'll have a huge maximum balance for the three days before they use the money to buy another house. Happens all the time.

2. I've saved the pdfs I've generated for the Feds from the last couple of years. In fact, if you're doing it right, you have to download their form, fill it in and then save it before you can upload it to file. Leaves a copy on your computer that you can use as a model for next year (or for whatever purpose you like). 
Cheers,
Bev


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## solost1992 (Apr 2, 2014)

Thanks Bev.


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## HillbillyCanuck (Apr 9, 2012)

Bevdeforges said:


> 2. I've saved the pdfs I've generated for the Feds from the last couple of years. In fact, if you're doing it right, you have to download their form, fill it in and then save it before you can upload it to file. Leaves a copy on your computer that you can use as a model for next year (or for whatever purpose you like).
> Cheers,
> Bev


If you leave these files on your computer, anyone who steals your computer or hacks into it now has access to all your account numbers. It's probably better to store these files externally on a USB stick or external hard drive. If you really need to keep them on your computer, they should be encrypted. This also applies to IRS Form 8938. Personally, I encrypt all financial information, including tax returns.


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## BBCWatcher (Dec 28, 2012)

True, and reasonable care is a good idea whether records are paper or electronic. But let's assume the absolute worst case. What are "they" going to do with account numbers?

Have you ever tried to withdraw money from an account that isn't yours using the account number? How'd that work out? 

Most banks issue account numbers sequentially, in a particular format, so they aren't hard to guess. They're routinely sent in the mail on bank statements, even appearing on postcards and coded into address labels. They're practically broadcast, often. Yet somehow the world's financial system manages to protect depositors' funds.


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## ForeignBody (Oct 20, 2011)

And checking accounts have the account details printed on the checks!


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## BBCWatcher (Dec 28, 2012)

Even more "shocking," have you ever received one of those product rebate checks? Very often they're sent as postcards to save on postage. The account number is printed on the check, of course, and it could very well be an account containing millions of dollars so that Proctor & Gamble (or whatever company) can pay all those consumer rebates.

This is not top secret information, suffice it to say.


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## HillbillyCanuck (Apr 9, 2012)

BBCWatcher said:


> True, and reasonable care is a good idea whether records are paper or electronic. But let's assume the absolute worst case. What are "they" going to do with account numbers?
> 
> Have you ever tried to withdraw money from an account that isn't yours using the account number? How'd that work out?
> 
> Most banks issue account numbers sequentially, in a particular format, so they aren't hard to guess. They're routinely sent in the mail on bank statements, even appearing on postcards and coded into address labels. They're practically broadcast, often. Yet somehow the world's financial system manages to protect depositors' funds.


I'm not going to create a primer on identity theft in a public forum. Look at the other information that's available just on an FBAR let alone on an income tax return. If I can figure it out, so can the bad guys.

I repeat, it's a bad idea to leave this information on your computer in an unencrypted format.


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## BBCWatcher (Dec 28, 2012)

No one necessarily argued otherwise, but the point is there's low risk and high risk -- there are degrees of risk. FBAR data simply isn't high risk. What is higher risk is worrying too much about low risks, causing health problems from the worry itself.


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