web analytics
August 2, 2015 / 17 Av, 5775
At a Glance
Blogs
Sponsored Post


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, 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

The author's opinion does not necessarily reflect the opinion of The Jewish Press.

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.

Current Top Story
Jewish and Muslim bless a crowd of hundreds at a special prayer rally at Gush Etzion junction.
Jews, Arabs Unite to Underline Co-existence in Gush Etzion
Latest Blogs Stories
Doug Goldstein

What is the impact of renouncing US citizenship if you live abroad? Can you visit the US again?

Flag of Norway

Gentile friends of Israel came from all over Norway & Europe and they sang “Hatikva” in Norwegian!

Anti-violence protest in Tel Aviv

As the incitement begins again against the settlers, the religious and the Right, let’s review the list of children killed by terrorists.

Inside of the home burned in the Prce Tag attack in the village of Duma.

Reports of a dead baby, a devastated family, and indications of a gloating attacker.

In all the years (and this week it’s exactly 14 years) since our daughter was murdered, we have not found a single Arabic-language post, article, tweet or speech condemning that attack in the center of Jerusalem or the killings.

Everyone is angry at the ongoing Arab terrorism, but what does murdering a baby have to do with protecting Jewish lives or furthering Jewish settlement in the Land of Israel?

Tonight, live Meerkat interactive video tour and talk in Jerusalem.

The US doesn’t want Pollard & he doesn’t want America- release him with 1 condition: No return to US

Meet Republican US presidential candidate Kerry Bowers & listen to his message to the Israeli public

Amongst the Palestinians (sic) what is promoted and praised for its young people? Terror & martyrdom

“If you can’t negotiate with your enemy, why negotiate at all?” Great sound bite. The press loved it

The phenomenon pushing limits of Orthodoxy to the extreme left has no chance of becoming mainstream

Discussing, what should you do if you are feeling overstressed in your job and are tempted to quit?

Considering Esther Pollard’s group mismanaged his case, Pollard’s chances of parole are slim

Detention Camps for US Jews? Sounds farfetched but it did to Japanese-Americans during WW II as well

We asked the soldiers, what will you tell your children you did during the Disengagement?

More Articles from Doug Goldstein, CFP®
Doug Goldstein

What is the impact of renouncing US citizenship if you live abroad? Can you visit the US again?

Doug Goldstein

Meet Republican US presidential candidate Kerry Bowers & listen to his message to the Israeli public

Discussing, what should you do if you are feeling overstressed in your job and are tempted to quit?

Learn how modern technology can be used to foster personal development in life as well as in finance

Tony Stubblebine, founder of Coach.me, shares tips on translating desire for change into action

Talking about the best ways to give financial advice. Is “storytelling” helpful?

How can you get people motivated in the right way? Discover effective techniques right here.

Learn how discipline helps you reach your potential and the role good habits play in being a leader.

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: