JEAN:
Hello, I’m Jean Wetzler and I’m talking with Beth Elfrey about the June due date for the 2008 Report of Foreign Bank and Financial Accounts, or FBAR.
Hi Beth, I understand the FBAR is due at the end of June, Is that correct, and can you tell us who must file the form?
BETH:
That is correct, the FBAR due date is June 30th.
And unlike most income tax forms, there is no extension for the FBAR.
The FBAR is the form citizens, residents, and those in -- or doing business in -- the United States use to report financial accounts they have in foreign countries.
It applies if the value of those accounts totals more than $10,000 at any time during the calendar year.
The FBAR is also used by individuals who are required to report their signature authority over those foreign financial accounts even if they don’t have a financial interest in the account.
The information in the FBAR helps the government curtail the use of foreign accounts to circumvent the income tax law, and helps combat money laundering.
JEAN:
You said citizens, residents and those in, or doing business in, the United States must file the FBAR.
That sounds a little different than the way you have explained the filing requirement in the past.
BETH:
That’s right.
The definition of U.S. persons, for FBAR purposes, has expanded from prior years.
It still includes U.S. citizens and residents, but now it also includes persons who are not citizens or residents if they are in, and doing business in, the United States.
Filers will find the revised FBAR easier to complete and its instructions will make clearer the type of information being requested.
One benefit of the revised FBAR is that more filers will be able to include all their foreign financial accounts on one form.
In the past, they had to file multiple forms.
JEAN:
As with anything new, I imagine there’s a learning curve.
Do you have some tips to help people using the new form file an accurate FBAR?
BETH:
Yes, there are a few common mistakes that we’ve seen on the revised FBAR, so please pay particular attention to the instructions regarding:
Spouses reporting jointly owned and separately owned accounts,
Reporting interest in multiple foreign financial accounts, and
The difference in the reporting requirements when the number of foreign financial accounts exceeds 25 accounts.
JEAN:
Where can we get more information about the FBAR?
BETH:
Just go to IRS.gov and type “FBAR” in the Search Box.
There is a lot of FBAR information on that site, and we update it with helpful information all the time.
Also, anyone with a general question about the FBAR can send an e-mail to FBARquestions@irs.gov
This e-mail address is only for questions, though.
FBAR forms cannot be filed by e-mail.
We also have a toll free number to get help.
Just call 1-800-800-2877 and select options 2 or 3.
And finally, anyone living overseas can also get assistance from U.S. embassies and consulates.
JEAN:
Thank you, Beth.
I’ve been talking with Beth Elfrey, of the IRS.
This is Jean Wetzler.
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