PDF Foreign Bank Account Form FAQ - US

Frequently Asked Questions FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR)

Can I paper file the FBAR? No. This filing must be done on-line directly with FinCEN. Paper submissions are no longer accepted. The link below will take you to a site from which you may complete and e-file the form:

Who is required to file the FBAR? Generally, all United States persons are required to file a FBAR to report a financial interest in or signature or other authority over foreign financial accounts if the aggregate value of the foreign financial account(s) exceeds $10,000 at any time during the calendar year.

Who is a United States person for purposes of the FBAR?

A United States person includes a US citizen or resident (including a person filing a US tax return as a full year or part year resident). A US person also includes an individual considered a resident using the substantial presence ("183 day") test for any portion of the tax year.

What accounts are subject to the FBAR rules? Any financial account that is a foreign financial account is subject to the FBAR rules.

What is a financial account?

A financial account includes, but is not limited to, a savings, demand, checking deposit, time deposit, securities, brokerage or other account maintained with a financial institution (including debit card and prepaid credit card accounts). A financial account also includes commodity futures or options account, an insurance or annuity policy with a cash value, and a mutual fund or similar pooled fund that issues shares available to the general public that have a regular net asset value determination and regular redemptions.

Other accounts which are reportable which you may not have considered include the following. Please note that this is not an inclusive listing, but rather examples of the types of accounts that are required to be disclosed:

Tax payment accounts

Pensions

Mutual funds / unit trusts

Hedge funds

Private equity funds

In particular, defined contribution plans, stakeholder pensions, SIPPs and other types of personal pension plans generally need to be reported since there is an individual account in the participant's name in which they have a financial interest.

Generally, employer sponsored defined benefit plans do not need to be reported as the participant does not have access to the funds and does not have an individual account over which they have a financial interest or signature authority.

Finally, UK tax free accounts such as ISAs and PEPs must be reported on the FBAR.

What is a foreign financial account?

A foreign financial account is a financial account located outside the United States, including accounts held at foreign branches of US financial institutions.

What is the definition of "United States"?

For purposes of the FBAR filing requirements regarding both citizenship or residency and the definition of "foreign", "United States" is defined as the 50 states of the United States, the District of Columbia, the Indian Tribes, and the Territories and Insular Possessions of the United States.

How is the maximum value of the account determined?

For bank accounts, the maximum value of the account is determined using a reasonable approximation of the greatest value of the currency or nonmonetary assets in the account during the calendar year. In many cases, this will be the largest value reported on any quarterly or more frequent account statements issued during the year. If the account holds stock, securities, or other non-monetary assets, the value of the account is the value of those assets. For FBAR purposes, the value of stock, securities and other non-monetary assets in the account are the fair market value of those assets at the end of the calendar year. The maximum value must be entered in box 15 of the form for each account, if known. If the maximum value of the account is unknown, box 15a , "Maximum account value unknown", should be checked.

If you have moved money between accounts during the year you will show the maximum value of each account separately (thus "double" counting.) There is no provision in the new FBAR instructions to address this limitation.

What exchange rate should I use?

You must convert the foreign currency into US dollars using the US Department of Treasury's Financial Management Service rate from the last day of the calendar year. The rates are posted here:



The year-end rate for Sterling was USD 1 = GBP 0.605

Does my spouse need to file a form for our jointly held accounts?

The FBAR requires a filer to report both separately and jointly owned accounts on one form. A spouse who has a joint financial interest in an account with an individual who is filing an FBAR should be included as a joint account holder in Part III. On Line 26, after the spouse's name, the word "spouse" should be entered after his/her last name. The spouse should also sign the report along with his/her filing spouse unless the spouse is filing his/her own FBAR (see below).

If the only reportable accounts that an individual has are those reported as jointly owned on their spouse's FBAR, the individual is not required to separately file his or her own FBAR. If an individual has a financial interest in or signature authority over other accounts that are not reported as jointly owned on an FBAR filed by the individual's spouse, the individual should file a separate report and include all accounts, including those that are jointly owned. For jointly owned accounts, each spouse must report the entire value of such accounts on each separate FBAR.

What if I file an FBAR with my spouse? Will I be able to E-File?

Yes, but the E-File system capability only allows for one digital signature. Although the current FBAR instructions state that a spouse included as a joint owner, who does not file a separate FBAR, must also sign the FBAR in Item 44, the E-Filing process will not allow for both signatures on the same electronic form. So, to take advantage of E-Filing, a form 114a () should be completed designating which spouse will file the FBAR. The 114a is retained by the filer and not sent to FinCEN. The spouse designated can use the BSA E-Filing System to E-File the FBAR.

How do I determine if I have signature or other authority, but no financial interest in an account?

Signature or other authority over a foreign financial account is defined from the perspective of the financial institution; as being able to control the disposition of money or other property in the account by direct communication (whether in writing or otherwise) to the bank or other financial institution where the account is maintained. An example of this would be if you had signature authority over an aging parent's account. You may not be listed as owner of the money in the account, but if anything happens to your parent, you can write checks on their behalf. You have signature authority regardless of whether you can exercise that authority alone or in conjunction with another individual. Please note that whether or not you exercise the authority over the account, you are still treated as having signature authority over such accounts.

What if I have signature authority over but no financial interest in a corporate account owned by my employer?

If you have signature or other authority over foreign financial accounts of your employer, you may be required to report these accounts on your personal FBAR. You should contact your employer directly if

you have any questions regarding whether you have an FBAR reporting obligation based on signature authority over company accounts.

What if I have financial interest in or signature or other authority over more than 25 accounts?

Check the "yes" box in item 14a or 14b and indicate the number of accounts in the space provided. Do not complete any further items in Part II or Part III for accounts in which you have financial interest. Complete items 34 through 43 in Part IV for accounts over which you have signature or other authority. Please note, if requested by the US Treasury Department, you must provide all information requested in Parts II and III on all accounts.

Do I still have to file an FBAR if I also file a Form 8938, Statement of Specified Foreign Financial Assets? If you are required to file a Form 8938 as part of your income tax return, you are still required to file the FBAR and report all of your foreign financial accounts even if you also reported/will report the same accounts on Form 8938..

How long am I required to retain records of the foreign financial accounts? You are required to maintain the records for a period of five (5) years.

When is the FBAR due?

Generally, the FBAR that covers the accounts maintained during the 2013 calendar year is due by June 30, 2014. Your FBAR will not be considered filed timely unless it has been received by FinCEN by June 30, 2014.

If you do not have all information required to file the form, you should file the form as complete as possible, by the due date and then amend it when you obtain the additional information. Unlike income tax returns there are no extensions of time to file a FBAR.

How do I file the FBAR?

For all forms filed after June 30, 2013, including late FBARs for prior years, filers must electronically file the documents using the FinCEN's e-filing system. This system can be accessed at the following website:

To use the BSA E-Filing system, each FBAR filer must download a PDF version of FinCEN Form 114 from the E- filing system, fill out the form electronically, and then upload the completed form.

What if I have further questions? You can email your FBAR related questions to FBARquestions@. For technical assistance with the e-file system, please email BSAEFilingHelp@ or call 1-866-346-9478

This document was not intended or written to be used, and it cannot be used, for the purpose of avoiding U.S. Federal, state or local tax penalties.

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