Foreign Bank Account Reporting

[curtklay]

I need a little clarity regarding filing a FBAR form with the US IRS. I read lots of info here that says you have to file this form if you have Thai bank accounts that total over $10,000.

However, on the FBAR instructions, it says if the accounts didn't earn any income, you can satisfy the reporting requirement by checking the box on part 3 of schedule B when filing your 1040:

"Reporting and Filing Information

A person who holds a foreign financial account may have a reporting obligation even though the account produces no taxable income. Checking the appropriate block on FBAR-related federal tax return or information return questions (e.g., on Schedule B of Form 1040, the "Other Information" section of Form 1041, Schedule B of Form 1065, and Schedule N of Form 1120) and filing the FBAR, satisfies the account holder's reporting obligation."

So, I filed my 1040 even though I owed no tax for 2010, and I checked the box on Schedule B. Does this mean I do not have to send in a FBAR even though I do have Thai bank accounts with a total of over $10,000? I have one regular savings account in my name only, with a balance of 800,000 baht ($26,000) to satisfy my retirement visa extension, and a joint account with my wife (US citizen) that varies in balance, but has had over $10,000 in it during 2010. I don't think either accrues any interest to speak of. I am wondering if I still need to send in a FBAR before the June deadline, or have I satisfied the requirement by informing IRS of my foreign bank accounts on my 1040 B.

In the interest of covering my butt, I am considering sending in the dam_n form anyway, but just wonder if this is overkill.

[Smokin Joe]

Yes, you do need to file one if your combined accounts were more than 10,000 USD equivalent at any time during calendar year 2010.

This is from the latest version of the form (Form TD F 90-22.1)

"Who Must File an FBAR. A United States person that has a financial interest in or signature authority over foreign financial accounts must file an FBAR if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year. See General Definitions, to determine who is a United States person."

[Tywais]

Did you miss this recent topic on the subject?

[lopburi3]

...and filing the FBAR, satisfies the account holder's reporting obligation."

Believe you misread the quoted text - it says you must file.

As said - this has nothing to do with your tax return - it is separate reporting requirement and anyone with the 10k or more must file.

[curtklay]

I did misread that. Thanks to all. Glad I'm still under the deadline. Thanks again!

...and filing the FBAR, satisfies the account holder's reporting obligation."

Believe you misread the quoted text - it says you must file.

As said - this has nothing to do with your tax return - it is separate reporting requirement and anyone with the 10k or more must file.

[curtklay]

Thanks for pointing out that post. I did not see it previously, and it answers all my questions.

This whole FBAR business is something I was not aware of until now, and hopefully my post will bring it to the attention of others who don't know about it.

Did you miss this recent topic on the subject?

Edited April 3, 2011 by curtklay