# Opening basic foreign bank account



## expus (5 mo ago)

This is for a US expat living abroad....

When opening a foreign bank account in a foreign country, we do not notify or send something to IRS or any other paperwork with the US during opening it correct? 

But during tax time next year while doing taxes for this year, we show it by marking the check box 7a on schedule B? And on line 7a it also mentions FBAR, but, if we don't qualify to file FBAR, there is nothing else to do, and all we do is to mark box 7a and that's all, correct? And these rule are still the same if that foreign bank account is in the country where we reside?


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## Bevdeforges (Nov 16, 2007)

There is no need to notify the IRS of anything when opening a foreign bank account. The bank may (or may not) ask you to give them a W-9 form which is a statement for their records only regarding your US tax "residency" and giving them your US Social Security number. Their requirements for reporting accounts are a bit different from the FBAR requirements for US citizens, but you don't have to worry about that. Just give them the forms and/or information they ask for. What happens with that information is their responsibility, not yours.

If the total balance in all your foreign accounts never exceeds the magic $10,000 mark, then you have no obligation to report anything for FBAR. Once the high balance (again, in total, not for individual accounts) hits $10,000 then you are supposed to report it. Deadline for filing FBARs is technically April 15th, even for those living overseas, but there is no penalty for late filing. 

The IRS does not make any sort of exceptions or exclusions for bank accounts in your country of residence. They are all "foreign bank accounts" to their minds. Be aware that France also has a requirement to report your foreign bank accounts (and online financial accounts) - though it's a simpler reporting and you include it with your regular annual tax declaration. (So any US bank accounts you may have retained.) France also requires reporting of foreign "assurance vie" accounts - the precise definition of which is kind of up for grabs, but roughly includes most "investment" accounts (though IRAs, 401Ks and other government-authorized self savings programs are considered to be "pension" funds rather than investment funds - at least under some interpretations of the regulations).


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## expus (5 mo ago)

Ok so if I do not qualify for FBAR, then all I do is to check the box 7a on schedule B and that's it correct? And if I have 2 foreign bank accounts, I still file 1 schedule B and again mark 7a and that's it right?


I do not live in France but since you mentioned, you mean it is simpler compared to FBAR filing to USA? or compared to just checking box 7a?


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## Bevdeforges (Nov 16, 2007)

Don't sweat the small stuff. Yes, you should file a Schedule B and answer the question about foreign bank accounts. 

The declaration of foreign accounts (bank and "assurance vie") is considerably simpler than the FBAR reporting in the US. On the French declarations, there is a form for each account you are declaring - but you only have to divulge the name and address of the bank or financial institution, your relationship to the account (i.e. personal account or you have some sort of a formal responsibility in the name of someone else), the account number. But you don't need to give them any balance or "high balance" information. Given the international agreements on cross border banking, I suspect more and more countries will have some form of reporting information for "foreign" accounts as time goes on.


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