# Anti FACTA, Anti FBAR



## FFMralph (Dec 22, 2012)

Disclaimer: In no way am I offering anyone advice. I am only pointing out a few indiscrepencies in the FACTA and FBAR reporting as I interpt them.

1. The IRS can only audit what they consider to be indiscrepencies in your return.
2. Only financial institutions are reporting under FACTA.
3. Only financial institutions and foreign tax offices are reporting under FBAR.

Food for thought:
1. The contents of safety deposit boxes are not recorded. Cash kept there cannot be reported by 3rd parties.

2. Under European "Money Laundering" laws, only transactions over 15,000€ are registered. This means, presious metals which are *physicaly* boughten, or sold over the counter, for less than 15,000€ cannot be reported by 3rd parties.

3. Realestate?

Anything left out? 
;-))


----------



## Nononymous (Jul 12, 2011)

Read about all the fun currently being had near the Swiss border, with nervous-looking well-to-do folks carrying light luggage frequently being stopped by their country's customs officials.

For Canadians not amused by FATCA, there's also the lie or refuse to answer the question approach. I've taken the latter.


----------



## Bevdeforges (Nov 16, 2007)

Not to get picky - but at least for France and the UK, the threshold for reporting transactions is generally €10,000 or GBP 10,000 (at least that's what my banks have indicated).

And how much stuff is being reported to the IRS based on FATCA is anyone's guess at the moment. Depends a bit on where the bank is located and their involvement in the US markets.
Cheers,
Bev


----------



## ConfusedinCroatia (Jan 22, 2014)

Does the IRS compare your streamlined returns to the printed copies of the 6 years of FBARs we are supposed to include?

How can they distinguish income from let's say a cash gift of $20,000-$30,000?


----------



## Bevdeforges (Nov 16, 2007)

ConfusedinCroatia said:


> Does the IRS compare your streamlined returns to the printed copies of the 6 years of FBARs we are supposed to include?
> 
> How can they distinguish income from let's say a cash gift of $20,000-$30,000?


As far as I can tell, they don't routinely compare your returns to the FBARs, though with mandatory e-filing of FBARs starting this year, that could change. 

But they are well aware that some large balances in overseas accounts can be transfers of capital that may only have been in the account for a short period of time. Or, may just be the capital you're living on. They are also well aware that some accounts pay little or no interest - so that even if you have a big wad of cash sitting in a bank account, there may or may not be any "income" to report on your tax returns.

The FBARs are literally a simple listing of your overseas accounts and, unless there is something "fishy" looking on your tax returns, should have no bearing on your taxes.
Cheers,
Bev


----------

