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-   -   Is it required to file FBAR? (https://archive.immigrationvoice.org/forum/showthread.php?t=499701)

refresher123 09-03-2009 06:03 PM

Is it required to file FBAR?
 
Dear All,

Firstly, sorry if this is a re-post or inappropriate forum, but I wanted to clarify on FBAR filing as the due date Sep 23 is fast approaching. I sent around $25k to my Indian bank account towards purchase of some property in 2008. The money was immediately disbursed from my account after the transfer. Do I still need to file FBAR as the max amount in my Indian bank account was over $10k(requirement for fBAR filing) at some point of time during 2008? Please let me know if anyone has the answer.

Thanks

refresher123 09-03-2009 07:06 PM

bump/\/\/\/\/\/\

simple1 09-03-2009 07:22 PM

Form TD F 90-22.1 (Rev. 10-2008) Page 6.
 
Form TD F 90-22.1 (Rev. 10-2008) Page 6.
===========================
Who Must File this Report. Each United States person who
has a financial interest in or signature or other authority over
any foreign financial accounts, including bank, securities, or
other types of financial accounts, in a foreign country, if the
aggregate value of these financial accounts exceeds $10,000
at any time during the calendar year
, must report that
relationship each calendar year by filing this report with the
Department of the Treasury on or before June 30, of the
succeeding year.

kart2007 06-08-2011 12:32 PM

Quote:

Originally Posted by refresher123 (Post 833877)
Dear All,

Firstly, sorry if this is a re-post or inappropriate forum, but I wanted to clarify on FBAR filing as the due date Sep 23 is fast approaching. I sent around $25k to my Indian bank account towards purchase of some property in 2008. The money was immediately disbursed from my account after the transfer. Do I still need to file FBAR as the max amount in my Indian bank account was over $10k(requirement for fBAR filing) at some point of time during 2008? Please let me know if anyone has the answer.

Thanks

I think 2011 FBAR is only for the previous calendar year (2010). I doubt that IRS would go back to 2008 and check. Also you have hardly accumulated any interest for that $25K. But if you still want to be 100% compliant do it. Its just paperwork and hassle.

I know another friend who has a similar situation where he deposited some funds in 2009 to pay off a loan but it sat in his account for just a week or so before it was removed. There is no intention of gaining interest...only signature authority and such cases are exempt. $25 K for a week or so won't gain more than Rs 500 (maybe less) or so interest. If IRS wants they can have his $10 in interest.

My CPA told me that having amounts like $25K or so previous to the current calendar year is irrelevant and just additional paperwork. The IRS is looking for people who have huge amounts of money sitting and accumulating interest. They are not going to chase and trouble individuals who have no intent to do money laundering or not gaining any significant interest.

thomachan72 06-08-2011 03:01 PM

Quote:

Originally Posted by kart2007 (Post 2645272)
I think 2011 FBAR is only for the previous calendar year (2010). I doubt that IRS would go back to 2008 and check. Also you have hardly accumulated any interest for that $25K. But if you still want to be 100% compliant do it. Its just paperwork and hassle.

I know another friend who has a similar situation where he deposited some funds in 2009 to pay off a loan but it sat in his account for just a week or so before it was removed. There is no intention of gaining interest...only signature authority and such cases are exempt. $25 K for a week or so won't gain more than Rs 500 (maybe less) or so interest. If IRS wants they can have his $10 in interest.

My CPA told me that having amounts like $25K or so previous to the current calendar year is irrelevant and just additional paperwork. The IRS is looking for people who have huge amounts of money sitting and accumulating interest. They are not going to chase and trouble individuals who have no intent to do money laundering or not gaining any significant interest.

I will be surprised if there are not thousands of Indians who sent money to their accounts in India for purchasing property or other matters. Even citizens and GC holders do that. I dont understand why IRS is targetting such places like India where tax evasion is litterally not possible on interest income from banks. They should focus on Swis or other places that even India is focussing.

jain4444 06-08-2011 08:02 PM

Quick Question
 
Do people on temporary visa such as H-1B or waiting for green card also need to file FBAR. My understanding was it is for US Citizens and residents of US (My understanding is residents here mean permanent residents)

mnkaushik 06-09-2011 10:12 AM

Quote:

Originally Posted by thomachan72 (Post 2645405)
I will be surprised if there are not thousands of Indians who sent money to their accounts in India for purchasing property or other matters. Even citizens and GC holders do that. I dont understand why IRS is targetting such places like India where tax evasion is litterally not possible on interest income from banks. They should focus on Swis or other places that even India is focussing.


You know that if you have an NRE account, you dont have to pay income tax in india. So, people can potentially keep money in NRE accounts and never show it in US and never pay taxes in India. Same is the case for MF and even real estate if you funded the whole thing via NRE account. It is always good to inform them and add the interest as your income during our tax filing here.

mnkaushik 06-09-2011 10:13 AM

Quote:

Originally Posted by jain4444 (Post 2645668)
Do people on temporary visa such as H-1B or waiting for green card also need to file FBAR. My understanding was it is for US Citizens and residents of US (My understanding is residents here mean permanent residents)

Resident for tax purpose is different from imigration status, I think H1B will be part of it. I used to file both FBAR and pay tax for indian income, when I was on H1B.

desi485 06-09-2011 09:50 PM

This article has useful information
 
Quote:

Originally Posted by jain4444 (Post 2645668)
Do people on temporary visa such as H-1B or waiting for green card also need to file FBAR. My understanding was it is for US Citizens and residents of US (My understanding is residents here mean permanent residents)

FBAR: A new financial disclosure for US-based NRIs - The Economic Times

Do you have a bank account in your home country??? must read this article which is published recently. Click on above link to read. Apart from this article, there is an official FAQ page which you can google. Please check with a professionals for your individual case. Good luck!

addsf345 06-10-2011 01:04 PM

I talked to 2 - 3 tax consultants about FBAR, but none of them had a clear understanding. At least that is what I felt.

forever_waiting 06-10-2011 04:12 PM

Tax consultants have no clue about various things when it comes to filing taxes for foreign nationals. That is why I started doing my own research and filing taxes on my own.

FBAR has to be filed by anyone and everyone (even an H1B visa holder is a "resident" for tax purposes...but anyway all citizens, visa holders etc come under this requirement).
As everyone knows by now the requirement is applied if you have greater than US$ 10K when you aggregate all your foreign accounts/FDs/CDs etc.

yes - practically maybe the Treasury Dept is only chasing big time money launderers and folks who have stashed away millions in foreign accounts. But considering the penalties involved (which are pretty severe) do you really want to take a chance? When I learnt about the FBAR form last year I went back 4 years and filed FBAR forms for all 4 years that I missed even though my foreign account aggregate balance for each of those years was just a shade over 10K.

addsf345 06-10-2011 05:23 PM

Quote:

Originally Posted by forever_waiting (Post 2648231)
Tax consultants have no clue about various things when it comes to filing taxes for foreign nationals. That is why I started doing my own research and filing taxes on my own.

FBAR has to be filed by anyone and everyone (even an H1B visa holder is a "resident" for tax purposes...but anyway all citizens, visa holders etc come under this requirement).
As everyone knows by now the requirement is applied if you have greater than US$ 10K when you aggregate all your foreign accounts/FDs/CDs etc.

yes - practically maybe the Treasury Dept is only chasing big time money launderers and folks who have stashed away millions in foreign accounts. But considering the penalties involved (which are pretty severe) do you really want to take a chance? When I learnt about the FBAR form last year I went back 4 years and filed FBAR forms for all 4 years that I missed even though my foreign account aggregate balance for each of those years was just a shade over 10K.

Is it agreegate or individual account? Example, if I have 2 accounts in india. One has balance of 10k and other one has balance of say only $100. Do I have to file FBAR for both or only for the account which has 10K or more balance?

jnr 06-21-2011 01:27 PM

What will be a good reason to state for having not filed FBAR's for years previous to 2010? Anybody with previous successful experiences?

mnkaushik 06-21-2011 01:50 PM

Aggregate
 
Quote:

Originally Posted by addsf345 (Post 2648340)
Is it agreegate or individual account? Example, if I have 2 accounts in india. One has balance of 10k and other one has balance of say only $100. Do I have to file FBAR for both or only for the account which has 10K or more balance?

It is total amount (aggregate) and you will haae to provide info for each account.

jnr 06-21-2011 01:58 PM

Quote:

Originally Posted by forever_waiting (Post 2648231)
Tax consultants have no clue about various things when it comes to filing taxes for foreign nationals. That is why I started doing my own research and filing taxes on my own.

FBAR has to be filed by anyone and everyone (even an H1B visa holder is a "resident" for tax purposes...but anyway all citizens, visa holders etc come under this requirement).
As everyone knows by now the requirement is applied if you have greater than US$ 10K when you aggregate all your foreign accounts/FDs/CDs etc.

yes - practically maybe the Treasury Dept is only chasing big time money launderers and folks who have stashed away millions in foreign accounts. But considering the penalties involved (which are pretty severe) do you really want to take a chance? When I learnt about the FBAR form last year I went back 4 years and filed FBAR forms for all 4 years that I missed even though my foreign account aggregate balance for each of those years was just a shade over 10K.

What was the reason you gave for your previous 4 year late filings? Did they assess penalty?

What will be a good reason to state for having not filed FBAR's for years previous to 2010? Anybody with previous successful experiences?


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