# FBAR fun



## Alltimegreat1 (Feb 25, 2015)

I decided to get my FBAR out of the way so I can focus on my tax return later this month. I'm just about done, but a few things aren't clear to me.

1. My wife is a non-resident alien. We're filing jointly this year and requesting an ITIN for her. We have two joint accounts in Germany, which I'm declaring on my FBAR. Is she required to submit her own separate FBAR? What about filling out Form 114a?

2. I read that life insurance policies are now reportable. I have a term life policy in place, which involves simply a lump-sum payout in the event of death. There is no savings or investment component. Is this term life policy reportable on my FBAR?

Thanks!


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## Bevdeforges (Nov 16, 2007)

Alltimegreat1 said:


> 1. My wife is a non-resident alien. We're filing jointly this year and requesting an ITIN for her. We have two joint accounts in Germany, which I'm declaring on my FBAR. Is she required to submit her own separate FBAR? What about filling out Form 114a?


There is no need to get your wife an ITIN just to file the FBAR report. You list the joint account in the appropriate section, and then where it asks for the joint holder, you indicate "NRA spouse." Where it asks for the joint holder's SSN, you indicate NRA (or N/A). Having an ITIN puts her under no obligation to file an FBAR.



> 2. I read that life insurance policies are now reportable. I have a term life policy in place, which involves simply a lump-sum payout in the event of death. There is no savings or investment component. Is this term life policy reportable on my FBAR?


I don't think so. When they say "life insurance" is reportable, they are generally referring to "assurance vie" - which here in Europe is actually an investment vehicle with a "cash value." Term life insurance has no cash value because if you stop making the payments, you lose the whole thing. With "Whole Life" or an assurance vie, if you decide to cancel the policy, there is a cash value you receive.
Cheers,
Bev


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## RandallSamaritan (Nov 5, 2013)

If you are filing a joint tax return with your wife (in conjunction with obtaining your ITIN), you are making a declaration to treat her as a US tax resident. As a result, this will subject her to FBAR disclosure requirements as well since you have made a voluntary election to treat her a US tax resident.

Best regards,
Randall Brody, EA


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## Alltimegreat1 (Feb 25, 2015)

Thanks for pointing that out. My wife will not have received her ITIN by the time she submits her FBAR, however. Where it asks for her SSN, should she just put "NRA (ITIN requested)" and include her German tax ID?


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## BBCWatcher (Dec 28, 2012)

RandallSamaritan said:


> If you are filing a joint tax return with your wife (in conjunction with obtaining your ITIN), you are making a declaration to treat her as a US tax resident.


For purposes of the tax return. FinCEN Form 114 has its own, separate filing requirements.

The IRS and FinCEN disagree with you. Check, for example, IRM 4.28.16.3.1.2.

In other words, no, a Section 6013(g) election -- i.e. a decision by a non-resident alien spouse to participate in his/her joint U.S. tax filing (IRS Form 1040) -- does NOT trigger a FinCEN Form 114 filing requirement for that NRA spouse.


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## Alltimegreat1 (Feb 25, 2015)

What say you, Mr. Brody?


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## iota2014 (Jul 30, 2015)

BBCWatcher said:


> For purposes of the tax return. FinCEN Form 114 has its own, separate filing requirements.
> 
> The IRS and FinCEN disagree with you. Check, for example, IRM 4.28.16.3.1.2.
> 
> In other words, no, a Section 6013(g) election -- i.e. a decision by a non-resident alien spouse to participate in his/her joint U.S. tax filing (IRS Form 1040) -- does NOT trigger a FinCEN Form 114 filing requirement for that NRA spouse.


Very strange bit about citizenship in 4.26.16.3.1.1 on that page of the manual.



> 4.26.16.3.1.1 (11-06-2015)
> U.S. Citizen
> 
> 1. A citizen of the U.S. has a U.S. birth certificate or naturalization papers.
> ...


Strange because the example given in (2) does not seem to be compatible with (1). Children born of U.S. citizens living abroad _don't_ have US birth certificates or naturalization papers.


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