UPDATE ON THE FBAR

It’s that time of year again…

In our attempts to keep our US readers updated on matters related to their reporting duties, we would like to share the following article recently published by the International Man regarding the filing of what is commonly referred to as the FBAR form..or now, the new FBAR.

You may not know – and, frankly, neither did we – that there has been a rather important change: as of this year, only electronic filing will be accepted.

We found the International Man article does a good job of taking readers step-by-step through the electronic filing process. Be sure to take note of this change and share it with your tax preparer or accountant.

On top of that, we also thought it was important to refresh everyone’s memories on the similarities and differences between the FBAR (due by the end of June) and the “Shadow FBAR” or Form 8938 (due in April). For that, we include here the current comparison table published by the IRS:

Click here for the 8938 and FBAR Comparison

Since our readers continue to inquire about the responsibility of reporting foreign annuities and life insurance policies in the context of the FBAR and form 8938, we want to confirm again that, to the best of our knowledge, any foreign annuity and/or life policy with a cash value should be reported on both forms. The IRS chart seems to confirm that understanding.

Finally, we would like to repeat that while we try to do our best in keeping current on the “what’s” and “how’s” of US tax reporting, we do still have to remind everyone that we are not US tax experts and no matter what opinion we provide, it is still always best to check with a qualified tax adviser.

Sincerely,

Bernarda Pesantez

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