# FBAR for 2020



## DebL22 (Jan 15, 2017)

Hi,
I'm a little lost here, with the changes. But I am looking to see if we still use the same form for FBARs this year?
Also, do we use the December 31, 2020 currency rate to convert to US dollars? Or is it something else.
Thanks for any help!


----------



## Moulard (Feb 3, 2017)

The FBAR form rarely changes. You can use the same form.

I make a copy of the previous year FBAR and update values, and then submit.

Yes, user the Treasury rate published for 31 December.


----------



## Bevdeforges (Nov 16, 2007)

You can only submit an FBAR online - Report Foreign Bank and Financial Accounts | FinCEN.gov

There is no one rate that you "must" use. Ideally, you would use the exchange rate on the date that each account hit its maximum value - though practically speaking, you can use the annual average rate for 2020 (the IRS publishes annual average rates - Yearly Average Currency Exchange Rates | Internal Revenue Service ) or any "reasonable" rate.


----------



## DebL22 (Jan 15, 2017)

Thank you both. I was using the treasury rate. Will use the IRS rate. I always use the Report Foreign Bank and Financial Accounts | FinCEN.gov to report, just wondered if the form changed... its so convenient to reuse a copy of the old one & change the amounts. Yay! I think I'm ready. Thanks again.


----------



## Moulard (Feb 3, 2017)

Bevdeforges said:


> There is no one rate that you "must" use.


Except that this is not true for the FBAR unless the Treasury Dept does not publish a rate for the country in question.

Per the FBAR Instructions



> Convert foreign currency by using the Treasury's Financial Management Service rate (select Exchange Rates under Reference & Guidance at www.fms.treas.gov) for the last day of the calendar year. If no Treasury Financial Management Service rate is available, use another verifiable exchange rate and provide the source of that rate.


Yes, you can convert wages, interest and deductions using any rate you like so long as 1) it is publically published and 2) you use it consistently, for the FBAR you must use the Treasury published rate.


----------



## Bevdeforges (Nov 16, 2007)

Given that there is no requirement to give the foreign currency amount your US$ report is based on, it really is a moot point. Many folks do a rough translation of the high balance and then add a few thousand $$ just to be sure (and consider it a "good faith estimate"). There's really nothing they could compare your reported high balance to - except maybe the year-end balance in the account reported by the financial institution. But at this point I have never heard of them doing anything of the kind. It really is something of an honor system.


----------



## Moulard (Feb 3, 2017)

I simply objected to your statement that "There is no one rate that you "must" use." because the instructions clearly state otherwise.

Far better for someone to know what is required and allow them to come to their own conclusion to the level of compliance than it is to tell them something that is demonstrably wrong and then have them follow it out of ignorance.


----------

