๐จโ๐ผ EA's Easy Guide to FBAR/FATCA
"Do I really need to report my foreign bank accounts and insurance policies to the IRS?"
Yes, you do. US citizens, Green Card holders, and resident aliens are required to report their foreign assets to the Treasury Department (FBAR) and the IRS (FATCA) annually.
This is an informational return to transparently disclose the existence of assets, not an additional tax assessment. However, intentional or accidental omissions can result in severe penalties starting at $10,000, making professional review essential.
FBAR: When the aggregate maximum balance of all foreign accounts exceeds $10,000 at any time during the calendar year.
FATCA: When the value of specified foreign financial assets exceeds certain thresholds (typically starting at $50,000) depending on filing status.
Covered Assets: Savings, checking, stocks, life insurance (with cash value), retirement pensions, securities, etc.
Services by Reporting Target and Asset Size
We promise secure reporting through a meticulous review without any omissions.
FBAR (FinCEN Form 114)
FBAR Basic
1~2 AccountsIdeal for portfolios consisting mainly of simple checking and savings accounts. As a basic service for those with 1-2 primary foreign bank accounts, we accurately convert and report your maximum balances.
FBAR Standard
1~2 AccountsSuitable for individuals holding multiple bank and brokerage accounts. Includes meticulous review of transactions, especially when foreign stock and investment accounts are involved.
FBAR Complex
1~2 AccountsA customized service for complex financial asset structures, including multiple bank/brokerage accounts, cash-value life insurance policies, and foreign retirement pensions.
FATCA (IRS Form 8938)
FATCA Basic
1~2 AccountsIdeal for simple checking and savings accounts. If your asset size requires IRS reporting in addition to FBAR, we consolidate basic account information into the required IRS format.
FATCA Standard
1~2 AccountsIdeal for asset profiles heavily featuring custodial accounts, stocks, and mutual funds. We classify and report dividends, capital gains, and investment assets according to strict IRS guidelines.
FATCA Complex
1~2 AccountsApplies to complex assets such as foreign crypto/stock trading, cash-value life insurance, and foreign pensions. We thoroughly analyze and report based on complex IRS classification systems.
Essential Checkpoints for Foreign Account Reporting
Even for non-willful violations, penalties for failing to file an FBAR can exceed $10,000 per account annually. Willful omissions can lead to penalties of up to 50% of the account balance, so extreme caution is required.
If the aggregate maximum balance of all your foreign financial accounts exceeds $10,000 at any point during the year, you must file. Remember, this applies to the combined total, not individual accounts.
FBAR is reported to the US Treasury (FinCEN), while FATCA is reported to the IRS. Depending on your asset size, you may be required to file both. Expert assessment is strongly recommended.