web analytics
September 17, 2014 / 22 Elul, 5774
At a Glance
Blogs
Sponsored Post
Apartment 758x530 Africa-Israel at the Israel Real Estate Exhibition in New York

Africa Israel Residences, part of the Africa Israel Investments Group led by international businessman Lev Leviev, will present 7 leading projects on the The Israel Real Estate Exhibition in New York on Sep 14-15, 2014.



Do You Need to File an FBAR Form with the IRS?

US citizens living abroad with foreign assets and bank accounts are required to file an FBAR form with the IRS.
Goldstein 485x300

Americans earning income in the USA have to file taxes on or before April 15th, but what about Americans earning and living abroad? With the implementation of the Patriot Act as well as other laws, expatriate Americans face a whole slew of new reporting regulations. These laws make it necessary for Americans abroad to file reports…even if they don’t owe any taxes.

Unfortunately, many U.S. citizens living overseas are unaware of their reporting obligations towards to America. If they just fill in a basic tax form, they may think they’re done.

But they’re not. (There’s a lot more to do. At the bottom of this article, find out how to get a discount on The Expatriate’s Guide to Handling Money and Taxes.)

If you have more than $10,000 in assets overseas (on any single day of the year…if you transfer funds to buy real estate, or if you have a foreign bank account, or if you have a foreign pension fund, etc.) Uncle Sam wants to know about it. While the intentions behind filing the FBAR form were to make it more difficult to launder money and increase tax revenue, the real result has been to make life a nightmare for Americans living abroad.

Even honest folks who are unaware of their filing obligations are committing a criminal offense if they don’t file this report correctly by June 30of every year for the preceding tax year.

I discussed the issue of U.S. expats’ tax obligations with international tax specialist Ron Zalben, of Don Shrensky & Co, Jerusalem, to find out what U.S. olim need to know.

“Why are FBAR (Foreign Bank and Financial Accounts) and FATCA (Foreign Account Tax Compliance Act) forms causing so much trouble?” I asked.

Ron explained, “Since so many U.S. citizens living abroad have never filed a U.S. tax return (for legitimate or other reasons), it’s scary for them to now begin a relationship with the IRS.  They’re scared because of the uncertainty of dealing with the IRS – something they never have dealt with previously. This uncertainty causes panic and fear.  Starting shortly with FATCA, foreign banks will start sharing information of U.S. citizens’ bank accounts with the IRS.”

I asked Ron for specific tips on how to file the FBAR and he gave me these three ideas:

1. Don’t panic.

2. Seek professional advice.

3. Organize the details of your income and foreign accounts for each tax year.

Indeed, although the idea of filling in a very long, complex tax form might seem rather daunting, approaching it in a systematic manner is helpful. Make sure to include all bank and savings accounts in your name, as well as any accounts you have authority over or a financial interest in (business accounts, non-profit organization treasurers, children’s accounts, etc.)

To further awareness of American expatriates’ reporting requirements both Ron and I contributed chapters to a new book, called The Expatriate’s Guide to Handling Money and Taxes. The idea behind the book is to spread the awareness of new tax legislation that has already had a profound effect on expats everywhere.

If you want to make sure that you fulfill your legal obligation to the U.S. government properly, download this book and be sure to implement the easy-to-follow checklist of things to do. For Jewish Press readers, get half off the regular price of the book by using the discount code JPRESS. Go to www.ExpatGuideToMoney.com and order now. The discount will expire on tax day, April 15th.

About the Author: Douglas Goldstein, CFP®, is the director of Profile Investment Services, Ltd, a financial planning and investment services firm located in Jerusalem. He specializes in working with clients who live outside of the United States and want to maintain a U.S. brokerage account. Doug’s newest book, co-authored with Susan Polgar, about how using chess strategies to improve your finances, Rich As A King can be purchased at www.richasaking.com. He is a licensed financial professional both in the U.S. and Israel. Securities offered through Portfolio Resources Group, Inc., Member FINRA, SIPC, MSRB, SIFMA, FSI. Accounts held at Pershing LLC., Member NYSE/SIPC, a subsidiary of The Bank of New York Mellon Corporation. Neither Profile nor PRG gives tax or legal advice. Before immigrating to Israel, it is advisable to consult with a tax attorney who is knowledgeable about Israeli law. Contact at doug@profile-financial.com


If you don't see your comment after publishing it, refresh the page.

Our comments section is intended for meaningful responses and debates in a civilized manner. We ask that you respect the fact that we are a religious Jewish website and avoid inappropriate language at all cost.

If you promote any foreign religions, gods or messiahs, lies about Israel, anti-Semitism, or advocate violence (except against terrorists), your permission to comment may be revoked.

No Responses to “Do You Need to File an FBAR Form with the IRS?”

Comments are closed.

SocialTwist Tell-a-Friend

Current Top Story
ISIS's response to President Obama's warnings came in the form of a movie trailer.
ISIS Sends Obama Fiery Video Response [video]
Latest Blogs Stories
rgds

Smear campaigns by people with agendas other than justice do not faze him; He does what is right.

Lebanon's Hezbollah terror organization, now fighting in Syria, says the presence of ISIS makes it "clear"  that it must remain to fight the brutal terrorist group.

Countries like Turkey, Europe and even the US have proven fertile ground for recruiting terrorists

Death to All (Zionist) Juice

How many times have you heard anti-semites spew words like Israel are Nazis, or what you are doing to the Arabs is worse that what the Nazis did to the Jews?!…

hacker

My blog, Israpundit, was hacked, and I had to move to a new domain…

There’s much confusion about the definition of Daas Torah; simply put it means the wisdom of Torah.

We’ll never be able to negotiate a true, lasting peace with the Arabs.Their aim is our destruction.

Now I live in a country where every shop in the food court is kosher! I can have anything I want!

Pashkevil: “Come out today and battle the Zionist Amalek and all the traitors in Nahal Haredi…”

Jordan: Only M.E. country with no historical basis and ruled by occupiers placed by European powers.

Why is an IRA a worthwhile account for retirement? And how can you use it to the best advantage?

Like the fighter pilot’s letter, I wonder if certain units are simply too sensitive to allow certain leftwingers to serve in, and to entrust in their hands the security of our country and our lives.

There is only one thing more tragic than experiencing a terror attack, and that is allowing those who attacked you to do it again!

Smuggling Gazans into Europe is cheaper than fighting with Gaza, and then rebuilding all the destruction.

This week’s parsha offers a new covenant; a covenant that speaks to national life unlike any other

Why did I feel so uncomfortable around people with special needs? It’s not like they’re contagious.

The US government ignores Saudi policies, focusing narrowly on Saudi oil and military cooperation.

More Articles from Doug Goldstein, CFP®
Doug Goldstein

Why is an IRA a worthwhile account for retirement? And how can you use it to the best advantage?

Doug Goldstein

How do you reach the top of your profession, and are you always aware of your own talents?

How has the sudden growth in modern technology affected world economy and future employment levels?

Learn about Monte Carlo-not the place but simulator forbuilding a financial plan.

This week’s podcast discusses the need for transparency in international business dealings.

Life after 50? You better believe it! Tips on how to prepare and enjoy life after retirement.

Marriage is not just about emotional fidelity but about financial fidelity as well.

Discussion on recent changes to Social Security benefits and how it will effect you.

Printed from: http://www.jewishpress.com/blogs/goldstein-on-gelt/do-you-need-to-file-a-fbar-form-with-the-irs/2013/03/05/

Scan this QR code to visit this page online: