As an Expat, trying to figure out all the proper forms and things to do I thank you for your help because there’s no one to really help you when you’re out here thank you again
Can you help me, please. I'm an expat as well. I do not work and have not filed a tax return in years. I have a bank account of less than 1300 per year to comply with the my host country's visa requirement. After just recently finding out about the fbar filing requirement, I'm filing this year's fbar on time. However, would filing past years fbar be asking for an audit. Thanks for any help you can give.
Great job! Thank you so much for doing that as a CPA I read so many bland Tax updates but you make it fun and interesting. I really really appreciate your videos and I will subscribe like and comment them as I watch them!
The vast majority of "US persons" living overseas, particularly if they are citizens of those nations should file NOTHING with the IRS or any other US criminal organisation. Dear IRS - BITE ME!
FBAR enforcement against US expats is fairly impossible. Unless there is something to attach in the US, or some contingent tax evasion or other more serious charge to which would be extraditable (I can't see how a bare FBAR charge would be extraditable -- the crime alleged must be a felony in both countries, failing to file and FBAR is only a crime in the US). That is why there is little civilly or criminally that the US government can do. And I for one think the government should only have laws it can actually enforce. Having unenforceable laws creates contempt for the law.
But a Dutchman born in the Netherlands alerted to his US tax "responsibilities" by his bank(his mother was born in the USA) because of FATCA should tell the IRS to go pound sand and file any communication on the bottom of the parrots cage. File nothing. That should be the number one tactic of ALL being pointed at and accused of being a "US person" in the great US FATCA witch hunt. And as you say, filing so you generate a TAX DEBT gives the IRS MORE powers to take money, so go back to plan one. The residents and citizens of other nations (in most cases) should file NOTHING with the IRS.
Completely agree. If a person has permanent residency or citizenship in another country the IRS and US government can pretty much forget about it, especially is one never ever goes inside US territory.
Mike Breen your absolutely RIGHT I dont get why people are even stressing about filing when they live overseas...I would NEVER File anything to them if I ever left the USA for good....I personally know people that left years ago from the USA one was a Naturalized US citizen but had citizenship in another country,got fed up with the US life packed a suitcase bought a 1 way ticket and departed for good..NEVER came back and NEVER renounced,he NEVER filed jack to the IRS and I highly doubt he ever will in this lifetime...there is NO way the US will ever be able to tax all those Americans around the world even with all its resources..FATCA,FBAR and Double taxation is evil,disgraceful and disgusting and needs to be Abolished/Repealed.
I am a US expat living in Australia (dual citizen). The US has a tax treaty with Australia, my filing threshold is over $92k to owe taxes to the US and Australia. FBAR rules, which state you do not have to file if your bank account never exceeds $10k, I have never filed because of this. Any bank account you have your name on as an American, is reported to the IIRS every year by the bank in Australia, as per the tax treaty. Because I have always been a stay at home partner, have never held a job in Australia, and have never earned money of my own, therefore I have never qualified to file tax. I am now disabled, my partner is nearly 70, so we are both on pensions. After rent, groceries, and any small thing we may need, we do not have a lot left over. I have always been relieved that I do not have to go to the expense of these very expensive filings.
say government web site get hacked or your laptop get hacked? you filled infos on fbar for multiple bank accounts like; account numbers, type of accounts, bank name, bank location and address, bank account amounts. also your social security number and date of birth. can you sue the irs ?
What about new immigrants in the US who just started working and have a bank account that once had more than 10,000 USD in it? But as soon as they moved into the US, their foreign bank account now has nothing as they have moved all their money into their US bank account. Do they still have to file an FBAR for their bank account that has 0 in it? Or should they just close their foreign bank accounts?
Thank you @IRSMedic for helpful information. Do you need FBAR if you have for US based retirement account set by foreign employer ? Also international group life insurance which do not have cash value - means that your dependents only get money in situation of misfortunate events?
Sorry for not responding earlier. The US based retirement account - probably not. And it's hard to claim the group life is a "bank account" as there is no high account balance. However, I have seen people be over protective and report as there is so much terrible confusion created by the IRS.
Gov't pensions typically are defined benefits, thus have no account value and are typically something that do not go on a 8938 or FBAR. Additionally, in order to be reported via FATCA, there needs to be a Foreign Financial Institution (FFI) to do the reporting. An FFI is a institution that accepts deposits in the ordinary course of business. I don't see how a foreign sovereign making pension payments would be considered an FFI that FATCA would attach to. I do not know of any foreign governments that report the names of US citizens receiving pensions to the IRS. Nor can I see where their obligation to do so is created by any US law.
We were not informed of the FBAR by our CPA at H&R block for the last two years. We used an online software and then came to know about it. How do we proceed? Can we hold H&R block accountable?
I am so sorry you had the experience, Srinath. However, the law is just not on your side here -- you are 100% responsible for everything you sign. Even though you hired someone because you don't feel comfortable. The tax industry set themselves up pretty sweet. They are fairly inoculated from any claims as they can always say "you should have reviewed your return and instructions more closely as the law requires." Yeah they don't lead of with this in their advertising, do they? This is the sad state of the tax industry - volume providers with limited knowledge can basically screw up as bad as they want with impunity. The goods news is that there is likely a disclosure program that can clean up the mess they made for you. You can give us a ring at 888 477 4258 to find out which one is best for you or email info@irsmedic.com
Correct. The IRS is stuck in a 1970 time warp. $10,000 might not be the default amount to commit crimes. And the cartels use cash which isn't reportable on a FBAR.
Thanks for the video...I didnt know about FBAR since last week. I havent filed it for the past 4 years. Can i file file those now and not get penalized?
@@lHurtYourFeeIings - what’s the way out ? Can one simply file starting this year and continue thereafter without disclosing anything from the past like a soft or a quiet disclosure. Apparently so many haven’t even heard of this before .
@@gautamkhanna5842 I would completely not report it... the feds doesn't know unless you let them know, or the foerign bank releases all American customer data to US for some reason. Out of all the people that got in trouble, they decided to report it out of the blue, that is how they raise above the radar.
@@lHurtYourFeeIings - thanks . It’s for a friend who moved to a foreign country hence the reporting obligation as how come one survive in a foreign land without a bank account? So her concern was what happens if she starts to report it from this year onwards - would they ask for previous year records or will it just be considered as a fresh start and she’d get into the system
Should one file an FBAR while 4 years delinquent and unprepared to file with IRS, or should one wait until they are prepared to file with the IRS and then file the FBAR? The IRS owes me and my overseas account barely qualifies. I live overseas and have less than $1k in a US bank account.
Great question. Your FBAR filing requirements and tax requirements are separate so one would think the answer would be to file your FBARs asap and get to your tax returns later. However, the way the IRS disclosure programs works, in order to limited penalties, you typically want to do it one time all together, but that is not a concrete rule. I would suggest giving us a ring --- 888- 477-4258 we can probably give you the answer in 10 minutes.
Would filing an FBAR make sense for a dual-citizen with assets overseas whose bank is operating under another nationality's alias? Asking for a friend of course...
@@irsmedic I don't think it would be good for my friend to be added to an IRS registry list of FBAR filings. Not to mention the hefty penalties that would come as a result of not filing correctly, and that he would reveal his other alias.
@@roseforeuropa You have a very valind poiint. It is clear the IRS is trying to trip up people "who do that right thing" and then hammer them like they were the worst criminals on earth. If the IRS wants compliance, they can't continue to be absolute creeps.
I have foreign IRA account and bank accounts that had more than 10k in 2022. So, I have to file FBAR. My question is: “Do I have to include my IRA?” Because in IRS website it says: “you do not need to report foreign accounts that are: held in an individual retirement account (IRA) of which you’re an owner or beneficiary”. In some videos they say I have to report. I am confused.
The IRA here seems to be a term of art for a US individual retirement account. So a foreign IRA is not the IRS this is likely referring to. IRS regs and instructions say to report. Curiously the law at 31 USC 5314 only mentions monetarty instruments, not even bank accounts. So there is a huge area of uncertainty as the law and what the IRS/FinCEN requires are quite divorced form each other.
One good point was that if you’ve never filed FBAR, probably should never start. But once started, it’s better to do it well. Is it possible to consult?
Can you help me, please. I'm an expat. I do not work and have not filed a tax return in years. I have a bank account of less than 1300 per year to comply with the my host country's visa requirement. After just recently finding out about the fbar filing requirement, I'm filing this year's fbar on time. However, would filing past years fbar be asking for an audit. Thanks for any help you can give.
what am I watching? can I get a simply example of someone who left America and opened a foreign bank account.. etc.. I still have no idea whether or not I need to file an FBAR.
Great question. For tax purposes you are a tax US resident. Yet an FBAR is not a tax form. We advise our clients who are visa holders in the US to file an FBAR if they are required to file taxes.
@@bluehouselive6490 my friend is in visa and before moving he has some securities account. does he needs to fill FBAR.He is here temporarely say for 2 year.
As an Expat, trying to figure out all the proper forms and things to do I thank you for your help
because there’s no one to really help you when you’re out here thank you again
Can you help me, please. I'm an expat as well. I do not work and have not filed a tax return in years. I have a bank account of less than 1300 per year to comply with the my host country's visa requirement. After just recently finding out about the fbar filing requirement, I'm filing this year's fbar on time. However, would filing past years fbar be asking for an audit. Thanks for any help you can give.
Great job! Thank you so much for doing that as a CPA I read so many bland Tax updates but you make it fun and interesting. I really really appreciate your videos and I will subscribe like and comment them as I watch them!
You are doing an outstanding job.
Excellent presentation. No wasted time, and a written summary provided to boot. I may be contacting you for professional services.
I really love this comment. I love making real content that actually helps people!!!!
The vast majority of "US persons" living overseas, particularly if they are citizens of those nations should file NOTHING with the IRS or any other US criminal organisation.
Dear IRS - BITE ME!
FBAR enforcement against US expats is fairly impossible. Unless there is something to attach in the US, or some contingent tax evasion or other more serious charge to which would be extraditable (I can't see how a bare FBAR charge would be extraditable -- the crime alleged must be a felony in both countries, failing to file and FBAR is only a crime in the US). That is why there is little civilly or criminally that the US government can do. And I for one think the government should only have laws it can actually enforce. Having unenforceable laws creates contempt for the law.
But a Dutchman born in the Netherlands alerted to his US tax "responsibilities" by his bank(his mother was born in the USA) because of FATCA should tell the IRS to go pound sand and file any communication on the bottom of the parrots cage.
File nothing.
That should be the number one tactic of ALL being pointed at and accused of being a "US person" in the great US FATCA witch hunt.
And as you say, filing so you generate a TAX DEBT gives the IRS MORE powers to take money, so go back to plan one.
The residents and citizens of other nations (in most cases) should file NOTHING with the IRS.
Completely agree. If a person has permanent residency or citizenship in another country the IRS and US government can pretty much forget about it, especially is one never ever goes inside US territory.
@Mike Breen Exactly.
Mike Breen your absolutely RIGHT I dont get why people are even stressing about filing when they live overseas...I would NEVER File anything to them if I ever left the USA for good....I personally know people that left years ago from the USA one was a Naturalized US citizen but had citizenship in another country,got fed up with the US life packed a suitcase bought a 1 way ticket and departed for good..NEVER came back and NEVER renounced,he NEVER filed jack to the IRS and I highly doubt he ever will in this lifetime...there is NO way the US will ever be able to tax all those Americans around the world even with all its resources..FATCA,FBAR and Double taxation is evil,disgraceful and disgusting and needs to be Abolished/Repealed.
I am a US expat living in Australia (dual citizen). The US has a tax treaty with Australia, my filing threshold is over $92k to owe taxes to the US and Australia. FBAR rules, which state you do not have to file if your bank account never exceeds $10k, I have never filed because of this. Any bank account you have your name on as an American, is reported to the IIRS every year by the bank in Australia, as per the tax treaty. Because I have always been a stay at home partner, have never held a job in Australia, and have never earned money of my own, therefore I have never qualified to file tax. I am now disabled, my partner is nearly 70, so we are both on pensions. After rent, groceries, and any small thing we may need, we do not have a lot left over. I have always been relieved that I do not have to go to the expense of these very expensive filings.
Whatever you said is scary. Nobody would like to go out of the country on a job. Ad IRS and govt disclosure act is so risky to even follow the law.
In many foreign jurisdictions, it is illegal to report data.
say government web site get hacked or your laptop get hacked? you filled infos on fbar for multiple bank accounts like; account numbers, type of accounts, bank name, bank location and address, bank account amounts. also your social security number and date of birth. can you sue the irs ?
What about new immigrants in the US who just started working and have a bank account that once had more than 10,000 USD in it? But as soon as they moved into the US, their foreign bank account now has nothing as they have moved all their money into their US bank account. Do they still have to file an FBAR for their bank account that has 0 in it? Or should they just close their foreign bank accounts?
Just close it, it's not worth the headache
You said 10,000 for willful violation and then you said non-willful were 10,000. are they both the same?
Sorry for the confusion - up to 50% of account value for willful - $10k per non-willful
Thank you @IRSMedic for helpful information. Do you need FBAR if you have for US based retirement account set by foreign employer ? Also international group life insurance which do not have cash value - means that your dependents only get money in situation of misfortunate events?
Sorry for not responding earlier. The US based retirement account - probably not. And it's hard to claim the group life is a "bank account" as there is no high account balance. However, I have seen people be over protective and report as there is so much terrible confusion created by the IRS.
Are there any foreign governments which report the names of US citizens receiving pensions from that government to the IRS?
Gov't pensions typically are defined benefits, thus have no account value and are typically something that do not go on a 8938 or FBAR. Additionally, in order to be reported via FATCA, there needs to be a Foreign Financial Institution (FFI) to do the reporting. An FFI is a institution that accepts deposits in the ordinary course of business. I don't see how a foreign sovereign making pension payments would be considered an FFI that FATCA would attach to. I do not know of any foreign governments that report the names of US citizens receiving pensions to the IRS. Nor can I see where their obligation to do so is created by any US law.
Thank you
We were not informed of the FBAR by our CPA at H&R block for the last two years. We used an online software and then came to know about it. How do we proceed? Can we hold H&R block accountable?
I am so sorry you had the experience, Srinath. However, the law is just not on your side here -- you are 100% responsible for everything you sign. Even though you hired someone because you don't feel comfortable. The tax industry set themselves up pretty sweet. They are fairly inoculated from any claims as they can always say "you should have reviewed your return and instructions more closely as the law requires." Yeah they don't lead of with this in their advertising, do they?
This is the sad state of the tax industry - volume providers with limited knowledge can basically screw up as bad as they want with impunity. The goods news is that there is likely a disclosure program that can clean up the mess they made for you. You can give us a ring at 888 477 4258 to find out which one is best for you or email info@irsmedic.com
i think the fbar should be amended to the same amount as fatca. what is $10k nowadays?
Correct. The IRS is stuck in a 1970 time warp. $10,000 might not be the default amount to commit crimes. And the cartels use cash which isn't reportable on a FBAR.
Thanks for the video...I didnt know about FBAR since last week. I havent filed it for the past 4 years. Can i file file those now and not get penalized?
Don't. Don't back file. IRS will penalize you for sure.
@@lHurtYourFeeIings - what’s the way out ? Can one simply file starting this year and continue thereafter without disclosing anything from the past like a soft or a quiet disclosure. Apparently so many haven’t even heard of this before .
@@gautamkhanna5842 I would completely not report it... the feds doesn't know unless you let them know, or the foerign bank releases all American customer data to US for some reason. Out of all the people that got in trouble, they decided to report it out of the blue, that is how they raise above the radar.
@@lHurtYourFeeIings - thanks . It’s for a friend who moved to a foreign country hence the reporting obligation as how come one survive in a foreign land without a bank account? So her concern was what happens if she starts to report it from this year onwards - would they ask for previous year records or will it just be considered as a fresh start and she’d get into the system
@@gautamkhanna5842 don't.
Should one file an FBAR while 4 years delinquent and unprepared to file with IRS, or should one wait until they are prepared to file with the IRS and then file the FBAR? The IRS owes me and my overseas account barely qualifies. I live overseas and have less than $1k in a US bank account.
Great question. Your FBAR filing requirements and tax requirements are separate so one would think the answer would be to file your FBARs asap and get to your tax returns later. However, the way the IRS disclosure programs works, in order to limited penalties, you typically want to do it one time all together, but that is not a concrete rule. I would suggest giving us a ring --- 888- 477-4258 we can probably give you the answer in 10 minutes.
Would filing an FBAR make sense for a dual-citizen with assets overseas whose bank is operating under another nationality's alias? Asking for a friend of course...
Your friend should waste the Department of Treasury's resources by filing an FBAR.
@@irsmedic I don't think it would be good for my friend to be added to an IRS registry list of FBAR filings. Not to mention the hefty penalties that would come as a result of not filing correctly, and that he would reveal his other alias.
@@roseforeuropa You have a very valind poiint. It is clear the IRS is trying to trip up people "who do that right thing" and then hammer them like they were the worst criminals on earth. If the IRS wants compliance, they can't continue to be absolute creeps.
Thank you. Keep it up.
Is it 10K USD or any currency that amounts that totals 10K USD?
What about stocks in foreign businesses, bought on NYSE, through an IRA?
It's extremely easy to file.
Thanks Robbie! Will you immediately have to pay taxes after filling it? Or is it just for documentation? Or does it depend?
Yes unecessary risk
I have foreign IRA account and bank accounts that had more than 10k in 2022. So, I have to file FBAR.
My question is: “Do I have to include my IRA?”
Because in IRS website it says: “you do not need to report foreign accounts that are: held in an individual retirement account (IRA) of which you’re an owner or beneficiary”.
In some videos they say I have to report. I am confused.
The IRA here seems to be a term of art for a US individual retirement account. So a foreign IRA is not the IRS this is likely referring to. IRS regs and instructions say to report. Curiously the law at 31 USC 5314 only mentions monetarty instruments, not even bank accounts. So there is a huge area of uncertainty as the law and what the IRS/FinCEN requires are quite divorced form each other.
@@irsmedic thank you so much for the reply. I filed report but did not include my foreign IRA. I only included bank accounts:( what can I do now?
One good point was that if you’ve never filed FBAR, probably should never start. But once started, it’s better to do it well. Is it possible to consult?
sure thing - send a email to info@irsmedic
Can you help me, please. I'm an expat. I do not work and have not filed a tax return in years. I have a bank account of less than 1300 per year to comply with the my host country's visa requirement. After just recently finding out about the fbar filing requirement, I'm filing this year's fbar on time. However, would filing past years fbar be asking for an audit. Thanks for any help you can give.
great video
what am I watching? can I get a simply example of someone who left America and opened a foreign bank account.. etc.. I still have no idea whether or not I need to file an FBAR.
If your account's fair value at any time during the year exceeds $10,000 you have a filing requirement?
What happens if I don't file fbar? If I have over 10,000
I am on the L1B Intracompany Visa and I fill my 2019 tax return already so just wanted to know does it required to report FBAR?
Apparently yes if you met the substantial presence test… did you do it?
What if I’m on Ssdi?
im not a us citizen but im living in the us on job visa. do i still need to file FinCEN Form 114?
Great question. For tax purposes you are a tax US resident. Yet an FBAR is not a tax form. We advise our clients who are visa holders in the US to file an FBAR if they are required to file taxes.
@@bluehouselive6490 my friend is in visa and before moving he has some securities account. does he needs to fill FBAR.He is here temporarely say for 2 year.