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Mike Cobb of ECI Development – Best Places In The World To Retire User Account
Globe with various currencies to dramatize FBAR – Best Places In The World To Retire – International LivingThe FBAR is a reporting for for any bank account overseas owned or controlled by a US Citizen.  If you Google TDF-90 you'll be able to get the form and the several pages of exact rules for compliance.
 
In general, if you have a bank account overseas with more than $10,000 or the total of all your offshore bank accounts is over $10,000, plan to file this form.   
John Ohe of Hola Expat Tax Services – Best Places In The World To Retire User Account
If you have an interest or signature authority over foreign financial accounts that have a total balance exceeding $10,000 at any point of the year, you are required to file the FBAR (Foreign Bank Account Report – Form TD F 90-22.1). The FBAR is separate from your income tax filing, and the due date for filing (starting in 2017) is April 15. To complete the FBAR, it is advisable to maintain records of your monthly account balances. Otherwise, the paperwork may become a difficult exercise. Account balances need to be converted to U.S. dollars, using the F/X rate as of the last day of the year. Failure to report (non-willful) carries a penalty up to $10,000. Willful non-compliance potentially raises the penalty up to $100,000 or 50% of the taxpayer’s foreign assets (whichever is greater).
 
As of July 1, 2013, the FBAR has gone electronic, and is now called FinCEN 114. BTW, the acronym FinCen stands for Financial Crime Enforcement Network. The information required to be submitted remains the same.
David McKeegan of Greenback Expat Tax Services – Best Places In The World To Retire User Account
Swiss National Bank – Best Places In The World To Retire – International LivingYou need to report all of your foreign bank accounts each year if the total balance is over US $10,000 or the foreign equivalent.  So if you have a checking and a savings account overseas and you move $5,001 from the checking to the savings you now have $10,002 in all your combined off shore accounts so they need to be reported.  It’s a hassle, but it’s not difficult to report.
 
(Swiss National Bank, pictured.)
 
Don Nelson of TaxMeLess – Best Places In The World To Retire User Account
irs logo with blue background – Best Places In The World To Retire – International LivingThe FBAR form is now Form 114 and can no longer be filed on paper. You must file it on line at a special US Treasury Site.  It is due for each calendar year on the following June 30th. That due date cannot be extended.  You can incur a $10,000 or more penalty for failing to file the form for any year it applies or for filing the form late.  There are ways around this penalty though and you should consult with an experienced CPA / Attorney to enter into one of these programs.
 
The form must be filed if the combined highest balances in your foreign financial accounts at any time during the calendar year exceed $10,000 US or more.  Foreign financial accounts include banks, foreign stock brokers, foreign pension plans, foreign gold storage places, etc.
 
You must also report all income earned on these accounts on your Form 1040 and fill out the proper information on Schedule B stating that you are required to file an FBAR form.
Jay Butler of Asset Protection Services of America – Best Places In The World To Retire User Account

According to the Foreign Bank and Financial Authority (FBAR) regulations, the IRS must allow individuals to open private offshore bank accounts. So long as the aggregate value of all foreign financial accounts does not exceed $10,000 (USD) at any time during the calendar year, the assets need not be reported. Be mindful of interest bearing accounts, for if your total offshore accounts exceed $10,000 (USD) the IRS requires you to report it or risk facing a maximum penalty of five years in prison and the loss of up to 50% of your assets.

 

Properly executed, the benefit to such a strategy of moving money offshore lies in having a family open an offshore bank account in the name of each family member in the amount of $9,990 (USD) into a non-interest bearing account. Provided a person is careful to adhere to established guidelines this is a safe way to quickly move tens of thousands of dollars out of the country, depending on the number of family members in your household.

 

The Internal Revenue Service (IRS) considers all income reportable regardless of the source or location derived and most assets held offshore are reportable, however some are not.  When looking to preserve your assets it is important to understand the difference between taxable income and reportable assets.  As with all offshore structuring, consult with your legal or tax advisor to ensure your activities are in compliance with the laws of your resident country.

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The Best Places In The World To Retire Location Advisor makes personalized recommendations for where to live and retire overseasGet matched to your ideal location to live abroad.
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Best Places In The World To Retire Expat Stories contains text, video, and photos by people just like you who are already living abroadStories by expats & others about their life aborad.
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