# FBAR not so scary



## George6020

I've just researched and filed my 2013 FBAR, due on June 30.

BSA-E filing System is the govt-authorized secure website to file quickly and easily.

BSA means Bank Secrecy Act

FATCA means Foreign Accounts Tax Compliance Act

Fin CEN mean Financial Crimes Enforcement Network

FBAR means Foreign Bank Account Report

If your COMBINED accounts exceeded $10,000.00, you MUST file Form 114.

The Form is 6 pages long, but don't worry because it includes many situations. Basic personal info in on 1st page, then bank name, account number, balance if known. Next page if for "joint" account info. Then last page is for "electronic" signature. It took maybe 5 minutes to complete.....then SEND. I received email confirmation within 2 hours, then a followup email confirmation in 2 days.

Deadline to file for 2013 is June 30.................NO extensions allowed.


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## JimnNila143

*FBAR Explaination*



George6020 said:


> I've just researched and filed my 2013 FBAR, due on June 30.
> 
> BSA-E filing System is the govt-authorized secure website to file quickly and easily.
> 
> BSA means Bank Secrecy Act
> 
> FATCA means Foreign Accounts Tax Compliance Act
> 
> Fin CEN mean Financial Crimes Enforcement Network
> 
> FBAR means Foreign Bank Account Report
> 
> If your COMBINED accounts exceeded $10,000.00, you MUST file Form 114.
> 
> The Form is 6 pages long, but don't worry because it includes many situations. Basic personal info in on 1st page, then bank name, account number, balance if known. Next page if for "joint" account info. Then last page is for "electronic" signature. It took maybe 5 minutes to complete.....then SEND. I received email confirmation within 2 hours, then a followup email confirmation in 2 days.
> 
> Deadline to file for 2013 is June 30.................NO extensions allowed.


So that everyone is clear on this, on the COMBINED accounts part, if both accounts exceeded $10,000US [at any one time] you MUST file Form 114. Therefore if you have less than $10,000US in your combined account at any one time, you should not be required to file Form 114.


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## DonAndAbby

JimnNila143 said:


> So that everyone is clear on this, on the COMBINED accounts part, if both accounts exceeded $10,000US [at any one time] you MUST file Form 114. Therefore if you have less than $10,000US in your combined account at any one time, you should not be required to file Form 114.


There is some confusing information published by the government regarding the $10,000 threshold when you have multiple accounts. There is information that would indicate it works like Jim described. However, when I read the instructions, it has something different, so I used it.

According to the instructions, you first determine the highest balance of each account during the year. That would be on any date. Then you combine them to determine if you are above or below the $10,000 and need to file. The "any one time" wording in some other parts is what is confusing.

http://www.fincen.gov/forms/files/FBAR Line Item Filing Instructions.pdf

*Record Keeping Requirements.* Persons required to file an FBAR must retain records that contain the name in which each account is maintained, the number or other designation of the account, the name and address of the foreign financial institution that maintains the account, the type of account, and the maximum account value of each account during the reporting period. The records must be retained for a period of 5 years from June 30th of the year following the calendar year reported and must be available for inspection as provided by law. Retaining a copy of the filed FBAR can help to satisfy the record keeping requirements.

*Monetary amounts:* When recording the maximum value of accounts, record all amounts as U.S. Dollar amounts rounded up to the next whole dollar. The amount $15,265.25 would be recorded as $15,266. The maximum value of the account can be determined using the following steps.

NOTE: After determining the value of the account, as described below, if the value results in a negative (minus) value, enter zero (0) in item 15, “Maximum account value.”

*Step 1.* Determine the maximum value of each account (in the currency of that account) during the calendar year being reported. The maximum value of an account is a reasonable approximation of the greatest value of currency or nonmonetary assets in the account during the calendar year. Periodic account statements may be relied on to determine the maximum value of the account, provided that the statements fairly reflect the maximum account value during the calendar year. For Item 15, if the filer had a financial interest in more than one account, each account must be valued separately. For an account denominated in U.S. Dollars, the maximum value of the account is the largest U.S. Dollar value of the account during the report year.

*Step 2.* In the case of non-United States currency, convert the maximum account value for each account into United States dollars. Convert foreign currency by using the Treasury's Financial Management Service rate (select Exchange Rates under Reference & Guidance at Financial Management Service: A Bureau of the U.S. Department of the Treasury) 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. In valuing currency of a country that uses multiple exchange rates, use the rate that would
apply if the currency in the account were converted into United States dollars on the last day of
the calendar year.

If the maximum account value of a single account or *aggregate of the maximum account values of multiple accounts exceeds $10,000, an FBAR must be filed.* An FBAR is not required to be filed if the person did not have $10,000 of maximum value or aggregate maximum value in foreign financial accounts at any time during the calendar year.


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## JimnNila143

I know that the 'at any time' phrase may be confusing but you do have to consider the fact that at any time of the year, no matter which month it is, if your total combined bank balances exceed $10,000US you will have to fill out the form and file it. This is NOT for cumulative balances, i.e., what you get in a year's time, Jan-Dec, but for any particular month.


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