# FBAR for dual status



## keiry

Hello

I was a dual-status resident during 2016 (resident until Jan 27, non-resident to the end of the year). I did have a foreign bank account (foolishly opened it on Jan 13) with less than $10 000 total while being considered as a resident. 

Then when I accumulated more then $10k during my non-residency period during 2016. 

The question - Am I obligated to file FBAR in this situation?

My logical mind says - NO. But I have doubts.


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## Bevdeforges

Logic says you are probably right. However, when you left the US, did you surrender your green card (if you had one)? Or file a "sailing permit" to notify the IRS that you were out of there? https://www.irs.gov/individuals/international-taxpayers/departing-alien-clearance-sailing-permit
Cheers,
Bev


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## keiry

Bevdeforges said:


> Logic says you are probably right. However, when you left the US, did you surrender your green card (if you had one)?[/url]
> Cheers,
> Bev


Hi, 

I did file a Form I-407.


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## JustLurking

The FBAR is now 47 years old, and in all that time the US has never bothered to clarify anything around a 'part year' form.

For my part year in 2008, I asked the IRS directly by email. They replied to file up to surrendering the green card and mark the paper 'part year to <date>' (something no longer possible now that the FBAR is online only). My impression was that they entirely made up this answer on the spur of the moment.

So... logic says *no*: the IRS has no business at all prying into your finances after you surrendered a green card. (And for that matter, none really _before_ if you don't live in the US, but at least they're clear on that even if it is indefensible on most rational grounds.) Practicality also says *no*: if after nearly half a century the IRS still cannot say clearly what they require here, you don't have to jump through hoops to try to comply with vagueness.


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## Moulard

As JustLurking says there is no guidance on partial year returns... While it has been around for 45 years, it was mostly ignored or unknown. In fact I have read somewhere that even some of the Big 4 accounting firms were not aware of the filing requirement until FATCA came round.

My personal view is that if you take a literal reading of the FBAR filing instructions, and you were not a US Resident as on 18 April as defined in Section 7701(b) then you are no longer a US resident and should not be required to file the FBAR. The instructions don't for example say... "at any point during the year" or anything else that might provide clarity.

Whether you choose to file it one last time, is I guess up to you.. and the choice may be predicated on what sort of assets you have remaining in the US, that could in theory be confiscated to cover any non-reporting penalty - however remote the risk.


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## Moulard

> if after nearly half a century the IRS still cannot say clearly what they require here


That is because it is a Title 31 (Anti money laundering / Banking Secrecy) requirement not a Title 26 (Income Tax) requirement. 

Its only relatively recently that the Dept of Treasury delegated enforcement and penalty rights to the IRS.


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## iota2014

keiry said:


> Hello
> 
> I was a dual-status resident during 2016 (resident until Jan 27, non-resident to the end of the year). I did have a foreign bank account (foolishly opened it on Jan 13) with less than $10 000 total while being considered as a resident.
> 
> Then when I accumulated more then $10k during my non-residency period during 2016.
> 
> The question - Am I obligated to file FBAR in this situation?
> 
> My logical mind says - NO. But I have doubts.


_My_ logical mind suggests you should file the FBAR, using the highest amount during the period Jan 13 - Jan 27.

But common sense says don't bother.


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